Still doing pretty good
Key Economic Indicators
Inflation: This has been Milei's primary target. Monthly inflation, which peaked at around 25% in December 2023, has plummeted to below 2% in recent months. Annual inflation has also dropped significantly, from over 200% when he took office to a five-year low of around 31-36% by late 2025.
Fiscal Balance: The government achieved its first fiscal surplus in over a decade by implementing sweeping spending cuts, including slashing subsidies for transportation and energy, freezing public works projects, and laying off government workers.
Economic Activity: The "shock therapy" has led to a recession. The economy has slowed, job losses have occurred in both the public and private sectors (particularly in construction and industry), and consumer spending has cooled.
Poverty: The painful austerity measures have hit the general population hard, pushing up the cost of living for many. Poverty rates have surged, with some estimates reaching over 50% in early 2024, although later data suggested a drop to around 38% by mid-2025.
Market Confidence: Milei's policies have generally been welcomed by financial markets and international bodies like the IMF, which have praised the commitment to fiscal discipline. The country risk index has fallen, though recent market jitters have required financial lifelines from the U.S. to stabilize the peso.
Stop watching CNN.
