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Milei’s Argentina Sees Inflation Cool and Growth Prospects Surge as October Vote Nears

IMF projections of rapid expansion follow a sharp anti-inflation pivot now heading into a parliamentary test.

Overview

  • Monthly inflation has fallen below 2%, reaching about 1.6% in June 2025, according to recent reporting.
  • The IMF projects Argentina’s economy will grow 5.5% in 2025 and 4.5% in 2026 after a brief 2024 recession.
  • The government’s program includes deep spending cuts, dissolution and downsizing of ministries, the dismissal of roughly 50,000 public employees, deregulation, and a floated peso, with a budget surplus reported.
  • The PAZ reports that poverty rose to roughly 53% early in Milei’s term and has since declined to about 31%, while critics say the adjustment has hurt the poor and small weekly protests continue in Buenos Aires.
  • October parliamentary elections will shape Milei’s legislative leverage, with PAZ citing polls that place his party ahead and note an alliance with PRO in Buenos Aires.