Minister of Economy Luis 'Toto' Caputo stated on Tuesday that Argentina has the potential to achieve an economic growth of up to 10% in 2026, if the course of reforms and improvement of expectations driven by the government is consolidated.
"I could say that Argentina will grow by 5% or 6% and be proven short: in terms of potential, Argentina could comfortably grow by 9%," Caputo said during an event organized by the Center for Research for Sustainable Development (CIDeS), where he emphasized that the country is undergoing an economic transformation that requires confidence and continuity.
"It's a matter of Argentines believing in what is happening. That is not minor because Argentina is a country that did not exist internationally until a few weeks ago."
The minister also reflected on the causes of the economic deterioration in the past and underlined that the current performance is the result of better management.
"We did not do poorly by chance or because someone was playing against us, like the United States, the IMF, or the evil businessmen trying to destroy Argentina... we were never ourselves. The reality is that we did poorly because we did things poorly, and today it is the opposite: we do things well, so things will go well," he remarked.
Caputo also highlighted the international leadership of President Javier Miley, stating: "We have a President who is a benchmark and world lighthouse. Those who are most surprised are those who travel and see him in person for the first time: it is different to see this in person than to be told about it."
Asked about the exchange rate regime, the head of the Ministry of Treasury defended the band system against the proposal for a free-floating dollar.
"Some propose that the dollar floats, and it is an honest debate, I have no problem with those who think Argentina is in a position to float."
"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, economic or political shock," explained the minister.
"I said this when we went to Davos 20 months ago and many thought I was crazy, but today practically everyone knows it."
Finally, he assured that there is a political consensus to move forward with the reform program promoted by the Executive.
"Most politicians, with the exception of a group that we all know, support the reforms that the country needs. The elections were a great boost for business because they broaden the horizon of reform and investment prospects for many years... and I knock on wood. There may be some nuance, but everyone is in tune: the fear of ungovernability that existed until a few weeks ago has dissipated," he concluded.
