Argentina under Milei sees economic slowdown, protests and fiscal strain

Argentina’s economy contracted again in May, falling 0.5% from April and ending a brief recovery. Growth is now limited to export‑oriented sectors such as agriculture, lithium, oil and gas, while internal demand, industry and retail remain weak. The slowdown follows President Javier Milei’s austerity programme, which has cut inflation but also reduced household consumption and employment.

Large‑scale protests erupted in Buenos Aires after the World Cup, with thousands of retirees and union members demanding higher pensions and accusing the government of worsening living standards. Demonstrators voiced concerns that “the 80 percent of us remain with low wages” while a small elite benefits.

Fiscal data show the government posted a primary surplus of 0.6% of GDP for the first half of the year, but in June public accounts recorded a monthly deficit, raising questions about the durability of the fiscal anchor. Delinquent public debt and rising consumer‑credit non‑payment rates—reaching a 20‑year high of 12.1%—underscore the strain on the economy.

Milei has responded to criticism on social media, claiming foreign and left‑wing attacks are driven by “jealousy.” Opposition figures and economists argue the policies are deepening unemployment, poverty and debt, and warn that the fiscal surplus may be illusory due to postponed payments.