Milei to further deregulate Argentina's economy - Milei's bold reforms slow Argentina's inflation but fail to revive growth
Argentina's economic reforms under President Javier Milei have sparked both progress and controversy. Since his inauguration in December 2023, his government has pushed austerity measures, deregulation, and fiscal discipline. Yet the country's economic struggles persist, with mixed results in unemployment, inflation, and industrial output.
Milei took office in late 2023 with a promise to overhaul Argentina's economy. His policies included deep spending cuts, slashed subsidies, and frozen infrastructure projects. These moves quickly balanced the national budget and slowed inflation, fulfilling key campaign pledges.
In his state-of-the-nation address, he announced further plans for deregulation, tax reforms, and greater economic openness. He also highlighted Argentina's wealth in critical minerals, energy, and natural resources, framing them as vital for Western supply chains. The speech, however, was repeatedly interrupted by cheers from supporters and heckling from opposition lawmakers.
Despite these reforms, economic growth remains weak. Many sectors have seen output collapse, while informal employment stays high. Unemployment figures have fluctuated between 6.1% and 9.84% in recent periods, showing no clear downward or upward trend. Earlier rates had ranged from 7.8% to 11.6%, but the latest data suggests ongoing instability.
Milei's government has achieved some fiscal stability, yet Argentina's broader economy still faces challenges. With inflation easing but output shrinking in key industries, the impact of his policies remains uneven. The president has reaffirmed his commitment to strict financial controls and market liberalisation moving forward.
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