Argentina faces massive public works cuts and business closures

Argentina is experiencing significant economic shifts driven by fiscal adjustment policies. The national government has canceled or initiated the rescission of 1,683 public works projects, while transferring 457 others to provinces and municipalities. This leaves only 199 projects under national management, primarily in energy and rail sectors. The 2027 Budget allocates just 0.4% of GDP to infrastructure.

In the private sector, more than 30,000 companies have closed during the administration of President Javier Milei, according to the CEPA study center. While the government reports GDP growth and reduced inflation, social costs remain high, with one in three citizens living in poverty and rising employment precarity.

Small and medium-sized enterprises (SMEs) are also facing pressure from rising energy costs. The Industriales Pymes Argentinos (IPA) reported that some companies have seen electricity bills quadruple following changes to the wholesale electricity market, contributing to increased debt and business instability.