Luis ‘Toto’ Caputo has forecasted that Argentina’s economy may expand by as much as 10 percent in the coming year, contingent upon the approval of the government’s reform programme by Congress. During an event, Argentina’s economy minister remarked that confidence in President Javier Milei’s administration is on the rise following his success in the previous month’s midterm elections. “I could assert that Argentina will experience growth of five percent or six percent [next year] and still be underestimating the situation: in terms of its potential, Argentina could readily achieve a growth rate of nine percent,” Caputo stated. “It is essential for Argentines to have faith in the current situation.” The elections represented a significant advantage for the business community, as they expand the potential for reforms and investment for the foreseeable future,” he stated. “It is possible that Argentina will grow by up to 10 percent in 2026,” he confidently declared. Caputo emphasized Milei’s international reputation, asserting that Argentina was reaping benefits from his leadership.
We have a president who serves as a global leader and a guiding light. “That is no small thing because Argentina is a country that did not exist on the world stage until a few weeks ago,” he stated. “I expressed this viewpoint during our visit to Davos 20 months ago, and while many considered it unconventional at the time, it is now widely acknowledged.” Individuals who experience this phenomenon firsthand for the first time often express the greatest astonishment – the reality of witnessing it in person contrasts sharply with merely hearing about it. In response to inquiries regarding Argentina’s exchange rate regime, the head of the Treasury advocated for the “dirty float” band system, countering the suggestion for a free-floating dollar. There are proposals suggesting that the dollar should adopt a floating exchange rate, which presents a legitimate topic for discussion. I have no objection to those who believe Argentina is capable of allowing the peso to float freely. “For us, the band system is superior because Argentina is still a country with enormous volatility in the demand for money… it is sensitive to any internal or external shock, economic or political,” he explained.
Caputo also analyzed the underlying factors contributing to previous economic issues and emphasized the effectiveness of his team. “Our performance cannot be attributed to mere luck or external adversities, such as the United States, the IMF, or unscrupulous businessmen intent on undermining Argentina… the fault has never been ours. The reality is that we performed poorly due to our missteps, whereas today the situation is reversed: actions are being executed correctly, which suggests a favorable outcome,” he remarked. The minister conveyed optimism regarding the likelihood that Milei’s proposed reform programme, which aims to implement extensive alterations to the tax, labour, and pensions systems, will successfully navigate Congress.
“The majority of politicians, with the exception of a certain well-known group, endorse the necessary reforms for the country.” Caputo stated “We have already had meetings with the governors, and they have indicated their support for the reforms. There may be some nuances, but they are all aligned: the apprehension regarding ungovernability that prevailed until recently has now subsided.”