Despite a challenging year for Argentina and President Javier Milei, the payoff from his tough economic reforms is becoming evident. His popularity is rising domestically and earning recognition among conservatives globally.
According to The Telegraph, Argentina’s monthly inflation has significantly dropped under Milei’s leadership. When he took office in December 2023, inflation stood at 13%, but by October, it had decreased to 2.7%. While still high by Western standards, this marks a substantial improvement for Argentina’s struggling economy. The country also achieved its first fiscal surplus in over a decade.
After a year in office, Milei holds a respectable approval rating of 47%, a notable achievement given the deep spending cuts he implemented. Many initial skeptics believed his radical approach would doom him to a single term, but Milei has proven to be a pragmatic and efficient leader.
His no-nonsense, free-market policies have drawn the attention of international figures like Donald Trump. Recently, Milei became the first world leader to meet Trump after his election victory, showcasing the strengthening of conservative alliances.
Known for his symbolic golden chainsaw representing drastic state cuts, Milei’s administration has reduced public spending by a third and cut 30,000 public sector jobs. These measures are painful in the short term, with the economy projected to shrink by 3.5% this year. However, recent trends show signs of recovery, with wages rising modestly and poverty rates beginning to decline. Experts anticipate Argentina’s GDP to return to growth in 2025.
Milei’s approval rating, which initially dropped by 10 points due to austerity measures, has rebounded, reaching up to 56% in some polls. Analysts suggest the worst may be over, and Milei could soon be in a position to cut taxes, potentially giving his popularity an additional boost.
As Argentina’s economy begins to stabilize, Milei’s bold approach is being vindicated, demonstrating that his relentless dedication and free-market principles may well reshape the nation’s economic future.