March 21st, 2025
1. Government gets green light for decree supporting IMF agreement
Yesterday afternoon, the ruling party achieved its goal: it ratified the decree of necessity and urgency (DNU) of President Javier Milei which enables the government to seal a debt refinancing agreement with the International Monetary Fund (IMF). With the support of Pro, the UCR, the Civic Coalition, the Integration and Development Movement (MID), Federal Innovation, part of Federal Encounter, a handful of the radicals of Democracy and the deputies allied to the governors, the ruling party gathered 129 positive votes, 108 rejections and six abstentions.
2. February inflation was 2.4% and GDP grew 2.1%
February inflation failed to break the 2% barrier and stood at 2.4%, reaching 66.9% in the last 12 months. In the first two months of the year, prices rose 4.7%, according to the National Institute of Statistics and Censuses (Indec). On the other hand, the Gross Domestic Product (GDP) showed its first year-on-year increase of Javier Milei’s administration, rising 2.1% in the fourth quarter of 2024 compared to the same period of 2023, according to the National Institute of Statistics and Censuses (INDEC).
Infobae: La inflación de febrero fue de 2,4% y acumuló 66,9% en los últimos doce meses
3. Lists for upcoming City elections have been closed
This Wednesday, the alliances for the legislative elections in the City of Buenos Aires to be held on May 18 were finalized. For these elections, the PRO party managed to seal a series of agreements with new partners to create an electoral front, following the definitive break of Juntos por el Cambio. As a result, the City’s current ruling party will run under the name “Buenos Aires Primero” (Buenos Aires First), the slogan of current mayor Jorge Macri. In this space, the PRO will no longer count on its usual electoral allies such as the Radical Civic Union (UCR), the Civic Coalition-ARI (CC), the Socialist Party, or Public Trust, who decided to leave the bloc led by Darío Nieto; however, Macri will have the support of other parties, such as the Integration and Development Movement (MID), led by Oscar Zago, who previously was part of La Libertad Avanza. Meanwhile, Horacio Rodríguez Larreta, former mayor, will run as a candidate alongside Graciela Ocaña under the name “Volvamos Buenos Aires.” As for the Peronist opposition, in the City it will no longer be called “Unión por la Patria” but rather “Es ahora Buenos Aires” (It’s Now Buenos Aires), with Leandro Santoro as the head of the list. Additionally, the UCR will run under the name Evolución (Evolution), with Martín Lousteau and socialist allies; and the Left Front (FIT) will run again, which brings together the Workers’ Party (PO), Socialist Workers’ Party (PTS), Socialist Left, and the Socialist Workers’ Movement. Candidates will be announced next week.
4. Volatility in dollar rates
In recent days, the Argentine foreign exchange market has experienced significant volatility, especially in the blue dollar segment and financial quotes. On March 18, 2025, the blue dollar reached $1,285, its highest nominal value since September 2024. At the same time, the MEP dollar and the cash with liquidation (CCL) were around $1,299, registering daily increases of 3.9% and 3.5%, respectively. This upward trend takes place in a context of uncertainty due to the government’s negotiations with the International Monetary Fund (IMF) and devaluation expectations. Minister of Economy Luis Caputo stated that the amount of the financial rescue that Argentina would receive from the IMF has not yet been defined, which has generated concern in the markets and an increase in the country’s risk.
5. February trade balance records a surplus of US$227 million
In February 2025, Argentina’s trade balance recorded a surplus of US$227 million, according to the latest report of the National Institute of Statistics and Census (INDEC). During this month, exports totaled US$6.092 billion, up 10.1% compared to the same month of the previous year, while imports reached US$5.864 billion, increasing 42.3% year-on-year. In the first two months of 2025, exports totaled US$12.006 billion (rising 9.9% year-on-year) and imports US$11.617 billion (an increase of 33.0% year-on-year), resulting in a trade surplus of US$389 million. As for the main trading partners, Argentina recorded deficits with Brazil (US$360 million), China (US$1.118 billion), the European Union (US$321 million) and the United States (US$423 million). These data reflect a positive trend in Argentina’s trade balance, although there are challenges in the trade relationship with its main partners.