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[POLITICS] · Argentina · 33 sources

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Argentina government confidence hits low amid economic instability

Public confidence in Javier Milei's administration has reached a significant low. According to the Government Confidence Index (ICG) from the Universidad Torcuato Di Tella, the index fell 5.9% in September to 1.94 points on a 5-point scale. This represents a cumulative decline of 21.4% since the end of 2025. All five components of the index saw declines, with the largest drop occurring in the perception of the government's concern for the general interest, which fell 12.3% to 1.50 points.

This decline in confidence coincides with severe economic indicators. While the Monthly Estimator of Economic Activity (EMAE) shows a 5.6% increase since November 2023, the country has lost 329,667 registered salaried positions during the same period. Additionally, poverty rose by 4 points in the first half of 2026, affecting over 15 million people. Economic activity in July also saw a 2.9% contraction compared to June.

Financial markets have reacted to the instability. J.P. Morgan has advised clients to withdraw capital from Argentina, lowering its 2026 growth forecast from 2.7% to 1.5% and warning of a potential technical recession. Meanwhile, sovereign risk has faced upward pressure, and analysts are closely monitoring the political landscape ahead of the 2027 elections.

Entities

Argentina · Axel Kicillof · CB Global Data · Centro RA · Centro de Estudios para el Desarrollo Argentino · Chaco · INDEC · J.P. Morgan · Javier Milei · OPSA · Universidad Torcuato Di Tella

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