Luis Caputo Defends Argentina Economic Strategy and Future Outlook

Argentina’s Minister of Economy Luis Caputo defended the government’s economic program during a closing session of the Atlantic Council on April 7, 2026, at the Palacio Libertad. Caputo stated that the current transition is inexorable and that there is no turning back regarding the reforms being implemented to reduce the so-called Argentine cost.

During his presentation, Caputo described the economic state of the country prior to the current administration’s arrival as hell, citing a period of near hyperinflation, an uncontrolled deficit, and negative reserves of US$12,000 million. He characterized the current resistance to these measures, specifically from certain sectors of the press, as an attempt to install a narrative that does not align with reality.

Strategic Pillars and Fiscal Reforms

The Minister outlined a strategy focused on three main axes to lower production costs and stimulate economic activity. A primary component of this plan is the reduction of taxes, with Caputo noting that the government has already lowered taxes by 2.5 percentage points of the GDP. These measures included the removal of the impuesto país (country tax), import tariffs, and taxes on personal assets and real estate transfers.

Caputo emphasized that the government will continue with tax reductions and the advancement of privatizations. He also addressed the labor reform, stating that the administration is working on its regulation despite a court injunction that halted 83 articles, including the Fondo de Asistencia Laboral (FAL). The goal of the labor reform is to increase formalization, which the Ministry believes will lead to higher tax collection and further tax cuts.

the Minister highlighted the Fiscal Innocence Law and a specific mechanism designed to encourage Argentines to withdraw dollars from the mattress (informal savings) as key tools to boost economic activity in the coming months. He also expressed a desire to develop the capital market to serve the real economy.

Competitive Strategy and Political Outlook

Caputo explicitly rejected the notion of devaluation as a means to achieve competitiveness, criticizing those who insist that such a move is necessary. He maintained that the current path of structural reform is the correct method to stabilize and grow the economy.

Regarding the political climate, Caputo expressed high confidence in the government’s future, asserting that the 2027 election will be a walk in the park. This optimism follows a decisive win for President Javier Milei in the 2025 midterms, which reinforced support for the market-oriented reform agenda.

When questioned about other government controversies, including issues involving Cabinet Chief Manuel Adorni and disputes regarding mortgage credits from Banco Nación, Caputo minimized the impact. He stated that the situation involving Adorni does not affect the economy in any way and dismissed the controversy surrounding the bank credits.

We arrived with the mission of generating a profound change. That is what we have done since day one. Every profound change generates resistance.

Luis Caputo

The Minister concluded by asserting that the administration is taking actions that no previous government dared to undertake, framing the current economic management as a necessary departure from previous systemic failures.