When Javier Milei was elected president of Argentina in 2023, many believed the nation was headed toward disaster. A libertarian economist and TV personality who claimed to take telepathic advice from his five cloned English mastiffs, Milei also described himself as an “anarchocapitalist” and “tantric sex guru.” He also advocated for the legalization of organ sales, the unrestricted ownership of firearms and the dismantling of the central bank.
Yet, “El Loco”—The Madman, as his countrymen call him— accomplished the unimaginable: Argentina’s fiscal deficit was eliminated for the first time in 123 years.
In December 2024, Argentina emerged from the severe recession it entered in late 2023. Also, annual inflation is down from near 300% last April to nearly 100% (or about 2.5% monthly).
“Milei’s government has achieved what many consider a miracle in terms of cutting down inflation and stabilizing the economy and the US dollar’s price, two long-standing Argentinian traumas,” says Juan Pablo Ferrero of the Department of Politics, Languages and International Studies at the University of Bath. “These are notable accomplishments upon which Milei is now basing his political success.”
Milei’s actions have 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 seems to rely heavily on agro-exports, mining, and the sale of gas and oil,” Ferrero argues. The risks include the reprimarization of the economy, with the middle class paying the price.
Yet, Ferrero concedes, against many predictions, Milei’s leadership style is proving effective: “According to opinion polls, he remains a popular president, despite having implemented one of the most radical austerity programs ever recorded.”
Figures show that the economic recovery has not translated into better living conditions for many, with the country’s poverty rate jumping to 53% in the first half of 2024, an 11-point increase. Experts caution that Milei’s charisma isn’t enough. He will soon need to deliver broad and substantial growth that improves Argentinians’ living conditions if he wants to succeed in the 2025 mid-term elections.
