Argentine President Javier Milei expects inflation to collapse next year while the economy recovers more than expected from a recession exacerbated by his historic austerity campaign.

Milei's administration estimates annual inflation, currently more than 236%, will slow to 104.4% by the end of this year and 18.3% by December 2025, according to his first budget proposal. The president expects Argentina's economy to grow 5% next year, above the 3.5% forecast by analysts surveyed by the central bank.