Javier Milei’s Economic Overhaul Marks One Year: Argentina Grapples with Pain and Progress

The libertarian president's drastic reforms have curbed inflation and boosted fiscal stability but at significant social and economic costs.

Argentina's monthly inflation rate has dropped sharply from 25.5% in December 2023 to 2.7% in October 2024, though annual inflation remains high at 193%.
President Javier Milei's austerity measures, including subsidy cuts and pension freezes, have led to the country’s first fiscal surplus in over a decade but have deepened poverty to a two-decade high of 53%.
Public sector layoffs, reduced infrastructure spending, and pension cuts have sparked widespread economic hardship, with consumer spending falling 20% and unemployment rising significantly.
Despite the severe impact of these reforms, Milei's approval ratings have rebounded to around 50%, reflecting cautious optimism among Argentines who see early signs of economic stabilization.
International attention has grown, with Milei fostering relationships with leaders like Donald Trump and Elon Musk, while foreign investors remain cautiously optimistic about Argentina’s long-term economic potential.