The World Bank in Argentina

With a Gross Domestic Product (GDP) of approximately US$640 billion, Argentina is one of the largest economies in Latin America.

Argentina has vast natural resources in energy and agriculture. Within its 2.8 million square kilometers territory, Argentina is endowed with extraordinary fertile lands, gas, and lithium reserves, and has great potential for renewable energy. The country is a leading food producer with large-scale agricultural and livestock industries.  In addition, Argentina has significant opportunities in some manufacturing subsectors, and in innovative services in high tech industries. 

In 2024, the economy contracted by 1.7%, reflecting both the recession that began at the end of 2023—caused by the drought and significant accumulated imbalances—and the initial effects of the stabilization program. Nevertheless, economic activity rebounded strongly in the second half of the year and at the start of 2025. Since then, the economy began to slow down in the second quarter and shows signs of stagnation, amid increased electoral uncertainty and external fragility. Starting in September, exchange rate volatility intensified, reflecting the vulnerability of the external sector. For 2025, average GDP growth is estimated at 4.6%, largely explained by the strong growth at the beginning of the year, while for 2026, an expansion of 4% is projected, supported by the consolidation of macroeconomic stability, investment in energy, and a favorable performance in agriculture under benign weather conditions.

Since December 2023, Javier Milei’s administration has implemented a stabilization program based on a strong correction of the fiscal and external deficit, the realignment of relative prices, and the reduction of monetary imbalance. Among the main achievements are the primary fiscal surplus reached for the first time in years—while simultaneously strengthening transfers to vulnerable households—and the sustained reduction of monthly inflation, which fell from 25% in December 2023 to around 2% in August 2025, contributing to a decrease in poverty. 

In April 2025, the government initiated an Extended Fund Facility (EFF) program with the IMF, as part of an international effort together with the World Bank Group and the Inter-American Development Bank (IDB) to support the reform path that Argentina is implementing and help the country foster long-term growth and employment opportunities. Argentina received an initial disbursement of US$12 billion from the IMF and US$1.5 billion from the World Bank to support measures accompanying the reform agenda, protect the most vulnerable, and promote private investment. In August, the Fund approved the first review of the program, releasing another US$2 billion, despite the failure to meet the reserve accumulation target.

Last Updated: Oct 07, 2025

The World Bank is a long-term strategic partner of Argentina. We are currently working with the administration of President Javier Milei to develop a new World Bank Group Partnership Framework with Argentina for 2025-2029 aimed at contributing to poverty reduction through promoting private sector-led growth that generates quality jobs.

Projections indicate that in the next 10 years in Argentina, nearly two million young people will reach productive age, but jobs will be created for only half of them. Faced with this challenge, the World Bank is working to promote job creation, particularly for young people, women, and informal workers.

In Argentina, the main areas of the World Bank's program will include: promoting productive private investment, creating jobs, strengthening human capital, and improving connectivity.

Last Updated: Apr 23, 2025

Argentina has an active portfolio with the public sector of 26 projects totaling US$9.43 billion in loans. The portfolio focuses on supporting health, education, energy, and transportation programs. 

Over the past year, the World Bank Board of Directors approved several projects, including:

• Additional financing for the project “Promoting Better Jobs with Integrated Training and Employment Programs” (US$230 million) aimed at improving the access to quality jobs by expanding training and job search services.
• A project to enhance Argentina tax administration’s efficiency, effectiveness, and transparency (US$300 million)
• A Development Policy Financing (US$1.5 billion), which provides direct budget support for priority reform policies to promote employment and private sector-led growth.
• Integrated Early Childhood Development Project (US$500 million), which accompanies improvements in the implementation of transfer programs for mothers and children up to 4 years old.
• Supporting the Federal Policy for Enhancing Foundational Literacy (US$500 million), which seeks to improve reading and writing skills of students in the early years of primary school. 
• Support to the Sustainability and Equity of Public Transport Project (US$500 million), which will provide financing for the social tariff program for the most vulnerable.
• Supporting the Transition to a Sustainable Electricity Sector (US$500 million), which will help protect low-income users through subsidized rates and energy efficiency measures. 

Additionally, during 2024, the World Bank published two strategic reports: the Country Economic Memorandum, which analyzes options for sustainable economic growth, and the report The Poverty Traps, which identifies four interrelated obstacles contributing to the persistence of poverty in Argentina.

These reports add to a series of analytical studies that the World Bank conducts to achieve sustained poverty reduction in Argentina. Other recent reports focus on topics such as agriculture, the environment, pensions, subsidies, and cities, among others. 

Last Updated: Oct 07, 2025