The government downplayed the current account deficit: "It's expected and reasonable."

The National Government downplayed concerns about the current account deficit , which exceeded $5 billion in the first quarter of 2025, arguing that it is an expected and reasonable phenomenon in a context of sustained economic growth for the country. Thus, Javier Milei 's administration is toning down the controversy that arose in recent hours regarding where that money went.

Chief of Staff Guillermo Francos stated in a radio interview that the deficit reflects a significant shift in economic policy. "First, there is free exchange, and within the bands the dollar moves freely," he explained, emphasizing that this trend is a result of the decapitalization the country is facing and the need for investment to reverse it.

For his part, Deputy Minister of Economy José Luis Daza delved into the topic during a seminar with bankers and financiers, where he described the deficit as an "absolutely expected and reasonable" phenomenon for a country growing at 6% annually. With these statements, government specialists are easing the tone of this phenomenon and urging the markets to remain calm.

Daza contrasted Argentina's case with that of other countries in the region, which, with 2% growth, are managing deficits of between 2.5% and 3%. According to him, a 2% current account deficit for Argentina, in a context of accelerated growth, is more than logical. The deputy minister also emphasized that this deficit is not driven by fiscal deficits. "In Argentina, the treasury is saving," he asserted, attributing the deficit primarily to increased investment , especially from the private sector, which also finances it.

In this context, Daza predicted a fundamental change in the balance of payments thanks to the growth of the energy and mining sectors, which could generate a surplus of between 50 and 60 billion dollars, which would be equivalent to "two agricultural sectors."

The current account deficit is defined as the difference between a country's income and expenditure, or between savings and investment. The government official argued that, for a growing and undercapitalized country like Argentina, a deficit of this type is a sign of economic transformation and not a structural problem .

Finally, the official emphasized that the country's exchange rate "is determined by the supply and demand for dollars" and is not subject to controls, although he acknowledged that economists lack precise tools to predict its future behavior.