IMF Attempting to Accelerate Adjustment Policies in Argentina

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Issue Jun 03-09 2026: Beyond the data cited in some biased reports, there is no indication that the economy in Argentina is improving, neither in macroeconomic terms nor in those related to employment figures. Predictions about the future are also bleak, as a recent report from the IMF has revealed.

As Carlos Heller reported in Página/12 of Buenos Aires, according to the IMF, Argentina’s primary surplus is expected to reach 2.25% of the country’s GDP and adjustments caused by the burden of interest rates will be supported by reforms to its tax, pension, and fiscal structure systems.

If one keeps in mind that the primary surplus target for 2026 is 1.4%, further adjustments to spending and higher taxes will be required to pay the interest on the national debt and to finance policies such as tax reductions on exports.

In the medium term, the expected increase in collected revenue will come from taxes on sectors that have already been hit hard by the adjustments. Specifically, more workers will be affected by newly reformed income tax policy, which lowers the non-taxable minimum so that 20% more will paying it.

Additionally, a “simplification” of the tax on business profits has been proposed, according to which a single tax rate of 30% will be levied instead of the current range between 25% and 35%. Currently, SMEs pay 25% while very large companies pay 35%. In total, the IMF estimates that the additional revenue garnered from SMEs will account for 3.3 of Argentina’s GDP.

The IMF will certainly try to accelerate the pace of deregulation and reforms in Argentina so long as the country remains in debt to it. The 2027 elections will be a crucial opportunity for citizens to reject these policies.