Argentina says primary fiscal deficit shrank 58pc in August

BUENOS AIRES: Argentina posted a primary fiscal deficit of 10.35 billion pesos($408.1 million) in August, down 58 percent from the same month last year, the Economy Ministry said in a statement on Wednesday.

The primary deficit has contracted 31.7 percent this year, compared to the same period last year, the ministry said.

The primary budget balance, which measures government spending relative to income and does not include debt payments, is followed by the markets as an indicator of Argentina's ability to meet its financial obligations.

In the government's 2019 budget released on Monday, Argentina said it had a primary deficit target of 2.6 percent of gross domestic product for 2018, and is aiming for primary fiscal equilibrium next year.

"In terms of gross domestic product, the accumulated primary deficit through August was 0.9 percent, or half of that observed in the same 2017 period," the statement said.

The economy ministry also said Argentina's financial deficit was 14.5 billion pesos ($572.1 million) in August.