The Milei administration has been asserting for several months that the purchasing power of Argentines is on the mend following the significant fiscal adjustment of 2024 — even going so far as to claim it has already exceeded the levels observed during Alberto Fernández’s presidency. That assertion relies on a particular metric: the registered private-sector … Read more
President Javier Milei has successfully reduced inflation and poverty levels in Argentina, while also eradicating the budget deficit. However, the nation’s labour market remains entrenched in the crisis that he was elected to address. For a second consecutive year, the South American economy is experiencing growth; however, there is a decline in employment within the … Read more
United States billionaire entrepreneur and venture capitalist Peter Thiel has acquired a US$76 million stake in Argentina’s largest oil exporter, Vista Energy. This transaction represents his inaugural investment in the oil sector and signifies his initial foray into Patagonia’s Vaca Muerta oil field. Thiel Macro LLC, the hedge fund managed by Thiel, secured a 1% … Read more
The Milei administration successfully achieved a fiscal surplus in July, a defining characteristic of its economic strategy. The primary fiscal surplus in the first seven months of 2026 stood at 0.9% of GDP. Overall budget surplus, which includes debt interest payments, was recorded at 0.1% of GDP. “The fiscal surplus, which contributes to macroeconomic stability, … Read more
Three years into Javier Milei’s presidency, a significant portion of the Argentine economy continues to lag behind the levels of activity and consumption observed prior to his arrival at the Casa Rosada, a situation that appears to be causing concern within the economic team. Even so, the government has consistently rejected the notion of the … Read more
In mid-July, JPMorgan’s EMBI+ index for Argentina, which indicates the interest rate Argentina would incur for foreign borrowing, reached 402 basis points, marking its lowest point since April 2018. As time progressed, the likelihood of surpassing the 400-point threshold steadily diminished. Although the economic team did not explicitly aim for the JPMorgan index to dip … Read more
Argentina’s Central Bank is relaxing enduring limitations on dollar lending, permitting banks to provide foreign-currency credit to firms generating revenue in pesos, as President Javier Milei’s administration aims to enhance credit availability and stimulate economic activity. The measure will enable banks to extend loans amounting to 15 percent of their dollar deposits, which currently total … Read more
Two surveys of business leaders in Argentina indicate that diminished consumer spending and uncertainty regarding the timeline for economic recovery are emerging as significant concerns for the sector. One of the reports is the Business Climate Index, a survey that assesses the perceptions of business leaders regarding the business environment, the performance of their companies, … Read more
President Javier Milei’s administration is beginning to transition from an exclusive emphasis on combating inflation to a more nuanced approach, as growth, employment, and his approval ratings face challenges in gaining momentum. Argentina’s Central Bank permitted the currency to depreciate over the past three months, while the nation’s Treasury is facilitating increased liquidity in the … Read more
As the election year approaches, a recurring debate regarding the Argentine economy is once again becoming a focal point among market experts. Will the government permit the dollar-peso exchange rate to persist in its ascent, consequently reducing interest rates, or will it opt to sustain elevated yields in pesos to prevent capital flight toward the … Read more
