When Javier Milei was elected president of Argentina in 2023, many believed the country was heading for disaster. A libertarian economist and television personality who claimed to follow the telepathic advice of his five cloned English Mastiffs, Milei also describes himself as an “anarchocapitalist” and a “tantric sex guru.” He also advocated for legalizing organ sales, unrestricted gun ownership and dismantling the central bank.
Yet “El Loco” – the Madman, as his compatriots call him – accomplished the unimaginable: Argentina’s budget deficit was eliminated for the first time in 123 years.
In December 2024, Argentina emerged from the severe recession it entered at the end of 2023. In addition, annual inflation increased from almost 300% last April to almost 100% (or around 2.5% per month).
“Milei’s government has achieved what many consider a miracle in terms of reducing inflation and stabilizing the economy and the price of the US dollar, two long-standing Argentine traumas,” said Juan Pablo Ferrero of the University Department of Politics, Languages and International Studies. University of Bath. “These are remarkable achievements on which Milei now bases his political success. »
Milei’s actions also made Argentina expensive, Ferrero observes. Local and labor-intensive industries are struggling.
“Is this development model sustainable without a strong and dynamic industrial sector? So far, Milei’s approach appears to rely heavily on agribusiness exports, mining, and gas and oil sales,” says Ferrero. Risks include the reprimarization of the economy, for which the middle class will pay the price.
Yet, Ferrero concedes, contrary to many predictions, Milei’s leadership style is proving effective: “According to opinion polls, he remains a popular president, although he has implemented one of the programs of the most radical austerity ever recorded. »
Figures show that economic recovery has not translated into better living conditions for many, with the country’s poverty rate rising to 53% in the first half of 2024, an increase of 11 points. Experts warn that Milei’s charisma isn’t enough. He will soon need to achieve broad and substantial growth that improves the living conditions of Argentines if he is to succeed in the 2025 midterm elections.