Argentina Economic Recovery Slows Under President Javier Milei

Argentina's economic recovery is losing momentum under Javier Milei, with economists lowering full-year growth forecasts to 2.7%. This figure falls significantly short of the government's 5% budget target. Recent data indicates the economy likely shrank by 0.4% in the second quarter, reflecting a growing divide in sector performance. While mining, energy, and agriculture remain strong, the manufacturing, construction, and commerce sectors are weakening.

President of the Central Bank of Argentina Santiago Bausili acknowledged that growth is occurring "much more slowly than we would like," though he maintained that monetary policy will remain tight. Milei has successfully reduced triple-digit inflation to approximately 34%, but analysts suggest the current stagnation is partly due to the administration's decision to avoid borrowing from international markets.

The economic slowdown coincides with a July approval rating of 37.1%. These combined factors create significant political challenges for Milei as he prepares for re-election next year.