By Daniel Politi, Lucía Cholakian Herrera and Ana Ionova
Both domestically and internationally, Argentina’s leader, Javier Milei, has gained substantial support. And it’s not merely a casual following.
As a right-wing libertarian, Milei wasn’t an expected decision as the first global leader to welcome President-elect Donald Trump following his electoral triumph. Yet, there he was at Mar-a-Lago in Florida last month, receiving accolades from Trump.
“Your performance has been extraordinary,” Trump expressed to Milei during a gala event for a right-wing research organization. “You’ve accomplished a fantastic amount in a very brief span.”
Many Argentinians appear to concur. A year into his presidency, nearly 56% of Argentines view Milei favorably, making him one of the most admired leaders in recent Argentine history.
“He is the president that God sent to us,” stated Marcelo Capobianco, 54, a butcher residing in Buenos Aires. “He has restored our hope.”
Despite severe cutbacks affecting soup kitchens and public transport subsidies that have plunged over 5 million Argentines into poverty, Milei has made notable strides in addressing the alarming issue of the world’s highest inflation.
When Milei assumed office, the monthly inflation rate stood at 12.8%; it has since dropped to 2.4%, the lowest rate in four years.
Milei has implemented bold measures to put Argentina’s finances in order, terminating more than 30,000 government positions and enacting substantial reductions in funding for health, welfare, and education.
Prior to his election, skeptics doubted whether a former television commentator, who identifies as an anarcho-capitalist, could steer Argentina out of a prolonged economic slump.
In some respects, their apprehensions have materialized. Milei’s unconventional governing methods have thrust Argentina into a tumultuous new phase, marked by surging poverty rates and widespread public demonstrations.
“Daily, we see more individuals seeking meals,” noted Margarita Barrientos, 63, who oversees a soup kitchen in a working-class sector of Buenos Aires.
Yet, there are also indications that Milei’s approach is yielding results. Alongside the significant decrease in inflation, governmental revenues have, for the first time in 16 years, surpassed expenditures, with preliminary figures hinting at an economy that, after three quarters of decline, is stabilizing and may gradually begin to grow.
“Joyful days lie ahead for Argentina,” Milei asserted this week during a speech marking his first year in office. He pledged “sustained growth” for 2025, promising that the efforts and sacrifices of the nation “will not be in vain.”
Global financiers have applauded Milei’s initiatives, with Bank of America reporting that his “stabilization strategy is exceeding expectations.”
The International Monetary Fund forecasted that Argentina’s annual inflation would decrease to a manageable 45% by 2025, down from a staggering peak of 211% in 2023, commending Milei for his “remarkable achievements.”
Argentina’s inflation statistics have faced skepticism in the past due to previous administrations manipulating the data. However, the national statistics agency underwent a significant overhaul in 2015, leading to the current figures being widely regarded as reliable and aligning with independent assessments.
Nevertheless, for many everyday Argentines, Milei’s decisive economic measures have resulted in hardship. His government has reduced public spending by roughly a third, removing price controls and subsidies that once made transportation, heating, and food affordable, forcing more people into financial difficulty.
Still, some view a positive aspect in the government’s austerity initiatives.
Miguel Valderrama, who operates a small grocery store in Buenos Aires, expressed relief at no longer facing the rampant inflation that characterized life before Milei’s presidency.
“Prices would change from morning to noon, and again two days later,” described Valderrama, 40, who supported Milei in the elections.
Now, benefitting from greater stability, he can manage his stock without fear of unexpected price fluctuations. “In the past,” he remarked, “we never knew how much we would spend, or what things would cost.”
Milei’s ascension to leadership came after years marked by cycles of economic boom and bust. Once among the world’s wealthiest nations, Argentina’s finances were depleted by years of poor governance, resulting in multiple defaults on billions in international loans and leaving the economy struggling.
“Argentina ceased to grow in 2012,” noted Marina Dal Poggetto, executive director of EcoGo, a consultancy based in Argentina.
Positioning himself as an outsider, Milei attributed Argentina’s economic woes to corrupt politicians who squandered resources, branding political adversaries as “thieves” living like “royalty.”
He cautioned that should he secure the presidency, conditions might worsen before they improve. Regardless, his promises resonated with many Argentinians eager for transformation.
During his campaign, Milei proposed more radical policies, including shuttering Argentina’s central bank and replacing the peso with the U.S. dollar. However, upon assuming office, he did neither, and his actions have been notably less extreme than many anticipated.
“The initial framework of Milei’s program was considerably more rational than his campaign discourse,” Dal Poggetto commented. “They proved to be pragmatic, quite pragmatic.”
However, Milei’s efforts to address the nation’s enduring financial issues have provoked anger among many Argentinians, leading to large-scale protests regarding pension reductions, escalating prices, and decreased university funding.
Roberto Bejerano, 68, a retired taxi driver, conveyed that he could only afford the essentials with his monthly pension and had to forgo small luxuries like dining out and purchasing books.
“They mock us by claiming we are better off” due to the government’s strict financial policies, Bejerano lamented. “You don’t see it reflected in your wallet.”
He expressed concern over Milei’s widespread popularity amidst the struggles faced by many.
Some analysts cautioned that Milei’s fiscal strategies, which include foreign exchange controls, have supported the peso but are rendering Argentina’s exports, such as metals, soy, and beef, less competitive.
Critics further warned that Milei’s sweeping cuts could eventually hinder growth. Decreased investments in universities, research institutions, and healthcare might “diminish Argentina’s social and economic framework in the long run,” said Martín Kalos, director of EPyCA Consultores, an economic advisory firm.
Nevertheless, experts assert that Milei has accomplished the most urgent task: averting an even deeper inflation crisis. And, at present, many Argentines seem willing to grant Milei the time needed to pursue his extensive economic reforms.
“People feel certain measures were necessary,” remarked Mariel Fornoni, a political analyst leading Management and Fit, a polling organization. “Then, the pivotal question remains regarding how much their wallets can endure.”
