President Javier Milei recognized that the economic reforms implemented by his administration will unavoidably lead to the “disappearance” of certain economic sectors. His remarks come during a nationwide challenge for the industrial sector, as factories shut down in response to the government’s choice to deregulate the economy and permit an influx of imports. “If you are consistently implementing structural reforms that disrupt the economy, it is unrealistic to expect that certain sectors will remain intact,” he stated in an interview. The president remarked that sectors that “do not adapt will do badly,” while also attempting to highlight the advantages of his policies, noting that the situation presented a “upside: cheaper prices.”
A recent report, utilizing data from the United Nations, indicates that Argentina has experienced the second-worst industrial decline globally over the past two years. From 2023 to 2025, Argentina’s manufacturing sector experienced a decline of 7.9%, a decrease that was exceeded only by Hungary. The report indicated that, since Milei assumed office, Argentina’s manufacturing sector has faced challenges due to import liberalization and subdued domestic demand. During the administration of the libertarian economist, official data indicates that over 2,400 industrial companies have ceased operations, resulting in the loss of 73,000 manufacturing jobs, which represents 5% of the nation’s total industrial firms.
The national statistics institute, INDEC, reports that factories are functioning at merely 53.8% of their installed capacity. In the course of the interview, Milei highlighted the shutdown of tire manufacturer Fate, which is set to result in the unemployment of 920 individuals. “I comprehend the significant distress experienced by the 920 employees who are facing job losses. I empathize with their situation. “I have experienced unemployment firsthand, and I understand the hardship it entails,” he remarked.
Nevertheless, he affirmed that “new jobs will be created in other sectors of the economy.” Using Fate as an example, he noted that the tires produced by the company cost around $300, three times more than in some neighboring countries. “It’s true that this company is closing and these jobs are being lost, but now you have 300 more to spend in [other sectors of] the economy,” he stated.