Catenaa, Sunday, January 12, 2025 – President Javier Milei has achieved a historic milestone by eliminating Argentina’s fiscal deficit for the first time since 1901, a feat that has defied expectations since his election in 2023.
Known for his libertarian views and unorthodox leadership style, Milei has implemented radical austerity measures to stabilize the economy. As of December 2024, Argentina has exited a severe recession, and inflation has dropped from nearly 300% in April 2024 to around 100%, marking significant progress in a nation plagued by economic instability.
“Milei’s administration has tackled inflation and stabilized the US dollar, which were long-standing economic challenges,” said Juan Pablo Ferrero of the University of Bath.
However Argentina’s development model leans heavily on agro-exports and natural resource sales, potentially marginalizing local industries and middle-class citizens.
While the deficit reduction has bolstered Milei’s popularity, poverty levels have risen sharply to 53% in 2024, up from 42% the previous year. Critics argue that the economic recovery has yet to translate into improved living conditions for many Argentinians.
As Milei eyes the 2025 midterm elections, experts caution that his austerity measures must yield broader economic growth to sustain his political momentum. Despite challenges, opinion polls show Milei remains a popular leader, defying early predictions of his tenure.
