Luis Caputo: ‘It’s possible Argentina will grow by up to 10% in 2026’

Luis ‘Toto’ Caputo has predicted Argentina’s economy could grow by up to as much as 10 percent next year if the government’s reform programme is approved by Congress.

Speaking at an event organised by the Centro de Investigaciones para el Desarrollo del Seguro (CIDeS) think tank, Argentina’s economy minister said confidence in President Javer Milei’s government is soaring after his victory in last month’s midterm elections.

"I could say that Argentina will grow five percent or six percent [next year] and still be understating it: in terms of potential, Argentina could easily grow at nine percent," Caputo said.

"It's a matter of Argentines believing in what is happening. The elections were a big boost for the business community because they broaden the horizon for reforms and investment for many years to come,” he said. 

“It is possible that Argentina will grow by up to 10 percent in 2026," he confidently declared.

Caputo highlighted Milei's international image, stating that Argentina was benefitting from his leadership.

"We have a president who is a global leader and beacon. That is no small thing because Argentina is a country that did not exist on the world stage until a few weeks ago," he said.

"I said this when we went to Davos 20 months ago and many thought I was crazy, but today practically everyone knows it. Those who are most surprised are those who travel and see it in person for the first time – it's different to see this in person than to hear about it."

Asked about Argentina’s exchange rate regime, the head of the Treasury defended the “dirty float” band system against the proposal for a free-floating dollar. 

"Some propose that the dollar should float and it's an honest debate. I have no problem with those who think Argentina is in a position to float [the peso 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 reflected on the causes of past economic problems and stressed the performance of his team.

"We did not do badly by chance or because someone was working against us, such as the United States, the IMF or evil businessmen trying to destroy Argentina... it was never us. The reality is that we did badly because we did things badly, and today it's the opposite: things are being done right, so things will turn out well," he remarked.

The minister expressed confidence that Milei’s planned reform programme – which would see sweeping changes to tax, labour and pensions systems – would pass through Congress.

"Most politicians, except for a group we all know, support the reforms the country needs. We have already had meetings with the governors and they have told us that they will support the reforms,” said Caputo. 

“There may be some nuances, but they are all on the same page: the fear of ungovernability that existed until a few weeks ago has now dissipated," he concluded.

– TIMES/NA