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Argentina’s Economy Struggles Under Soaring Costs and Capital Market Exclusion

IMF support has failed to lure Argentina back into dollar debt markets.

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El proyecto Vicuña podría ser el más grande de la historia argentina. Foto: Archivo Lundin Mining.
El 53% de los estadounidenses encuestados afirman que los gastos por compras son una fuente importante de estrés

Overview

  • Production costs have surged 25% as higher utility tariffs and reduced output drive up unit expenses, industry group CAME warns.
  • At least 80 large multinational firms have exited the country this year, citing low profitability, high operating costs and restrictions on outbound dividend transfers.
  • President Javier Milei issued decree 534/2025 to veto pension increases, a two-year social security moratorium and a disability emergency law for lack of funding.
  • A private survey from EMEC forecasts 26.8% annual inflation for 2025 and projects the official dollar rate will reach ARS 1,468.69 by year-end after July’s 1.8% price gain.
  • Durable goods, cement and real estate sales are rebounding strongly while supermarkets and wholesalers lag, and food and beverage prices remain steady as industry groups limit pass-through.