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—due to a severe drought and the accumulation of significant economic imbalances—and the initial effects of the macroeconomic stabilization program implemented at the beginning of 2024. However, in the second half of the year, economic activity began to recover. By January 2025, GDP had reached levels close to those of March 2023, surpassing the decline recorded since the end of 2023.

Since December 2023, Javier Milei's administration has undertaken a macroeconomic stabilization process based on a strong correction of the fiscal and external deficit, the realignment of relative prices, and the reduction of monetary imbalance.

The initial results have been positive. The national government achieved a fiscal surplus for the first time in many years and reduced monthly inflation from 25.5% in December 2023 to 2.4% in February 2025. As a result, the country risk dropped significantly, from 2,500 basis points in August 2023 to around 700-800 basis points at the beginning of 2025, although it remains one of the highest in the region. Simultaneously, social protection measures were implemented, including real increases in benefits for the most vulnerable sectors (Universal Child Allowance and Alimentar program).

By 2025, a growth of 5.5% is projected, driven by the consolidation of macroeconomic stability, investment in the energy sector, and a favorable performance of the agro-industrial sector in the context of benign climatic conditions. 

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 along with a disbursement of US$1.5 billion from the World Bank to support measures accompanying macroeconomic stabilization, protect the most vulnerable, and promote trade and private sector investments.

Last Updated: Apr 23, 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 public sector portfolio of 26 projects totaling US$9.5 billion in loans. The portfolio focuses on supporting health, education, energy, and transportation programs.

During 2024, the World Bank's Board of Directors approved several projects, including: 

• 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: Apr 23, 2025