Key facts
- Argentina's 2027 budget proposal forecasts 4% GDP growth.
- The government expects a trade surplus of over $15 billion in 2027.
- Annual inflation is projected to be 18% in 2027.
- President Javier Milei is expected to seek re-election in 2027.
- The budget includes a proposed increase in defense spending.
Argentina's government presented its 2027 budget proposal to Congress on Tuesday, outlining President Javier Milei's economic projections and spending priorities ahead of the October 2027 presidential elections. The bill forecasts GDP growth of 4% in 2027, an increase from the expected 3% this year, and anticipates a trade surplus exceeding $15 billion. Annual inflation is projected to fall to 18% from 29% this year.
The budget is expected to serve as the administration's final full-year fiscal plan before the election, potentially guiding Milei's re-election campaign. The proposal now moves to the budget committee and then to Congress for approval. Argentina has previously operated without an approved budget, relying on rollovers of the previous year's plan as a fallback.
President Milei has advocated for increased defense spending to bolster sovereignty claims over the Falkland Islands, known as the Malvinas in Argentina. This stance has been influenced by signals from U.S. President Donald Trump regarding a potential shift in Washington's long-standing neutrality on the dispute. Milei's economic program since taking office in late 2023 has focused on spending cuts and austerity measures to eliminate the fiscal deficit, making any proposed increase in areas like defense particularly noteworthy, according to analysts.