Thanks to the government of Javier Milei, Argentina's public debt closed the year 2025 at 42% of Gross Domestic Product (GDP), the lowest level since 2017, according to a projection prepared by Adcap Grupo Financiero based on official data.
The report highlights a sharp reduction in indebtedness in relation to economic activity, in a context marked by fiscal surplus and economic growth during the current administration.
According to the consulting firm's analysis, the drop in the debt ratio is explained both by the fulfillment of financial commitments and by the economic expansion recorded in the period. The result positions the close of 2025 as the best record of the last eight years in terms of debt sustainability.
Javier Milei, en su jura como presidente.
Adcap carries out two different measurements to evaluate the evolution of indebtedness. In the first, called "total debt", the Treasury's liabilities with the private sector and multilateral organizations are included, in addition to the obligations of the Central Bank and other public funds. Under this criterion, the debt went from 156% of GDP in 2023, during the last year of the Kirchnerist government, to 78% at present.
The second measurement focuses exclusively on Treasury debt and excludes intra-public-sector maturities. In this case, the indicator showed an even more significant reduction: it fell from 86% of GDP in 2023 to 42% at the close of 2025. In both calculations, this is the lowest level since 2017, when total debt represented 57% of output and the one that excluded intra-public commitments stood at 29%.
The report also recalls that the largest jump in indebtedness occurred during 2023, when total maturities reached 154% of GDP and the debt that excludes the domestic public sector climbed to 86%. That scenario marked one of the highest points of the recent cycle and conditioned the financial situation that the current libertarian administration inherited.
El presidente Javier Milei.
During the first year of Javier Milei's administration, the indicators had already shown an initial correction. At that time, total debt stood at 83% of GDP and the one that excludes the intra-public sector reached 44%. Throughout 2025, both figures continued to decline, consolidating the trend.
Adcap explained that the combination of fiscal discipline and economic growth was key to reducing the ratio. Federico Filippini, Head of Research & Strategy at the consulting firm, stated that "between 2024 and 2025 debt payments, together with economic growth, made it possible to reduce the debt ratio as a percentage of GDP. For this year, we expect the dynamic to be maintained, favored by the sustained primary surplus".
In that regard, the report underscores the role of the fiscal result achieved during last year. In 2025, the primary surplus was 1.4% of GDP, exceeding the target agreed with the International Monetary Fund, which established an objective of 1.3%.
With that performance, Javier Milei's government achieved two consecutive years with balanced public accounts, a milestone that had not been recorded since 2008. The figure becomes relevant when one considers the historical impact of the fiscal deficit on indebtedness and macroeconomic stability.
