Argentina Growth Stuck Near 2%, Central Bank Chief Concedes
BCRA president Santiago Bausili said Argentina's economy has grown only about 2% a year since 2024, 'much slower than we would like,' as tight policy tames inflation but slows the recovery. The post Argentina Growth Stuck Near 2%, Central Bank Chief Concedes appeared first on The Rio Times .
Argentina's economy has been growing at an annual rate of around 2% since 2024, according to the country's central bank chief, Santiago Bausili. This rate of growth is described as "much slower than we would like" by Bausili, who spoke at a business forum in Mendoza on August 14, 2026. The 2% growth figure reflects the impact of Argentina's tight-money strategy, which has successfully tamed inflation and rebuilt reserves.
However, this strategy has also slowed down the economic recovery that President Javier Milei had promised to his voters. The slow growth is a result of the deliberate choice to keep money tight and credit expensive, which not only lowers inflation but also cools spending and investment. Despite the slow growth, the central bank's own expectations survey predicts that Argentina's growth for 2026 will be near 2.7%, with some forecasters expecting slightly higher numbers.
The central bank has been holding interest rates well above inflation, which has helped stabilize the currency. However, the cost of this strategy is felt by businesses and households, as borrowing remains expensive and many families feel like their economic situation is slowly improving rather than rapidly recovering.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.