Argentina recorded an unusual budget surplus equivalent to 0.2% of GDP in the first quarter of the year, President Javier Miley said Monday evening during a nationally televised speech where he reiterated his commitment to attack public spending to combat the economic crisis. runaway inflation.

In March, the national public sector recorded a financial surplus of 276,638 million pesos (about $322.4 million), resulting from primary improvement of P625,034 million, achieving a fiscal surplus for three consecutive months for the first time since 2008.

This creates an after-interest surplus equivalent to about 0.2% of GDP.January and March from 2024, figures provided to Reuters ahead of presidential speech based on government source.

“Fiscal prudence thus continues to strengthen, even exceeding the fiscal target agreed with the International Monetary Fund (IMF),” the Economy Ministry said immediately after the speech ended.

The Libertarian president used the national network for the third time since taking office on Dec. 10, when he announced his intention to slash government spending. Near gigantic devaluation of the Argentine peso by 54% which caused an increase in retail prices.

Miley won a surprise election victory last year by promising a major reform of the Argentine economy after years of crisis, with the idea of ​​dollarizing the economy, a proposal that has now been replaced by a basket of currencies to normalize the foreign exchange market.

“Today we can confirm that (…) The government was right and our plan is working,” the president said. “We said that the cause of all evil in Argentina is the budget deficit (…) We are moving towards the implementation of the largest shock stabilization program in history,” he added. Miley.

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The ultra-liberal president spoke of an “economic miracle” and highlighted the “heroic efforts of Argentines” to end the “festival of corruption of the last 20 years.”“, a situation that results in a strengthening of the peso, which has rarely happened in modern history against the dollar, plus some record values ​​for domestic assets.

Argentina faces annual inflation close to 290% as of March, high social pressure and rising poverty.

“We make the impossible possible (…) we do it even with limited room for maneuver,” he noted regarding the limited support his La Libertad Avanza party has in Congress.

lThe macro gains have been achieved in just four months of administration, with hard numbers from a haredi economist like Miley making stabilizing public finances a priority, helping the country exceed central bank reserve accumulation (BCRA) targets. reached an agreement with its main creditor, the IMF.

Miley gave a speech surrounded by Economy Minister Louis Caputo. Finance Minister Pablo Quirno BCRA President Santiago Bausiliand his deputy Vladimir Werning with direct criticism of the lack of legislative support due to delays in the changes he proposes, with extensive economic deregulation and the crisis inherited from the embezzlement of the Peronist Alberto Fernandez administration.

The message, read within 17 minutes, was recorded earlier at the Casa Rosada presidential headquarters. (Reuters).