Javier Milei's economic overhaul cuts inflation and delivers budget surplus
Updated
Updated · The New York Times · May 5
Javier Milei's economic overhaul cuts inflation and delivers budget surplus
16 articles · Updated · The New York Times · May 5
In Argentina, the president also eliminated 10 ministries, cut federal spending 30% and laid off about 63,000 public workers, more than 15% of the federal workforce.
Milei says the measures aim to end money-printing, shrink what he calls a corrupt state and build an entrepreneurial culture after decades of chronic deficits and inflation above 200% annually.
His chain-saw austerity has made him a reference point for the global right, drawing admiration from Donald Trump while intensifying domestic opposition over social cuts and his confrontational rhetoric.
Milei's Argentina relies on billions in US and IMF aid. How 'sovereign' is his radical economic experiment?
Milei's reforms cut inflation but fueled a recession. Can Argentina's economy recover before its society fractures?
Accused in a $5 million crypto scandal, can Milei's anti-corruption crusade survive the ongoing federal investigation?
From Hyperinflation to Growth: Argentina's Radical Reforms and Their Social Costs (2025–2026)
Overview
Since inheriting hyperinflation and fiscal deficits, Argentina under President Milei has sharply reduced inflation and achieved its first budget surplus in 14 years through deep spending cuts and targeted social aid. These fiscal and monetary reforms, supported by international backing and political gains, have driven strong economic growth and lowered poverty. However, growth remains uneven, with job losses in key sectors and rising informal employment fueling social unrest. Labor reforms shifting power to employers face union opposition, while the new monetary framework is untested and vulnerable. Sustaining progress depends on balancing continued reforms with social inclusion and managing external financial dependencies amid political challenges.