Argentina's Milei Marks One Year in Office with Economic Reforms and Mixed Results

Inflation has dropped significantly under Milei's leadership, but poverty and recession remain critical challenges.

Javier Milei's administration has achieved rare budget surpluses and reduced monthly inflation from 25.5% to 2.7%, stabilizing the peso and slowing hyperinflation.
Radical budget cuts, including slashing government ministries and subsidies, have led to increased poverty, now over 50%, and a deeper recession, with GDP contracting 3.5% this year.
Public transport costs have surged due to subsidy removal, while deregulation efforts, such as lifting rent controls, have increased housing availability and reduced rents in real terms.
Investors are cautiously optimistic, with Argentina's stock market up 140% this year, but concerns persist over capital controls and an overvalued peso impacting long-term growth.
Milei's approval remains strong at around 50%, with supporters citing trust in his reforms, though international criticism and diplomatic tensions could hinder further progress.