ARGENTINA

With a nearly 46 million population and a $633bn GDP in 2024, Argentina is a large, open economy with a diverse resource base but continues to be burdened by repeated macroeconomic turbulence. Its private sector holds a modest positive net international investment position (NIIP): approximately €36 billion by September 2024. Which is less than 5 percent of GDP, reflecting relatively limited net asset strength compared with emerging market peers.

A principal weakness is Argentina’s elevated public debt ratio: about 80 percent of GDP in early 2024. Recent IMF-supported reforms have sharply reduced inflation (from nearly 300 percent to single digits) and eliminated the fiscal deficit in 2025, but fiscal vulnerabilities remain significant. 

Historically, Argentina has struggled with fiscal credibility, experiencing recurrent debt crises and high inflation. However, recent reforms (subsidy removal, public wage restraint, and tighter expenditure control) signal an institutional shift toward balance. 

The IMF projects real GDP growth of 5.5 percent in 2025, following a contraction of around -2.5 percent in 2023, and expects further stabilisation into the medium term.

Still, medium‑term challenges include restoring investor confidence, managing a fragile currency and FX debt overhang, and servicing external debt. Overall, Argentina’s rebound is fragile but promising, provided fiscal consolidation and structural reform remain credible.