Capital Economy, Business and Finance
Argentina has finally emerged from a recession that hit the country in late 2023, marking a milestone in President Javier Milei’s attempts to revive the beleaguered economy.
GDP expanded 3.9 per cent from July to September and the premium on Argentine debt compared to the US dropped to 6.77 per cent, down from 20 when Milei took office.
Despite a brutal austerity drive and an initial increase in the poverty rate, confidence in Milei’s “anarcho-capitalist” approach is growing. Argentines have deposited $20 billion in the financial system this year as part of Milei’s tax amnesty programme and foreign investment is drifting back on his promise to lift the currency and capital controls stifling investment.
Donald Trump isn’t the only rightwing leader in the Americas who could reap the benefits of cooling inflation. Argentina’s midterm elections are scheduled for next year.
