Economists question Milei's Argentina recovery after February contraction
Updated
Updated · Bloomberg · May 8
Economists question Milei's Argentina recovery after February contraction
11 articles · Updated · Bloomberg · May 8
Argentina's economy suffered its steepest monthly fall since 2023 in February, with retail and manufacturing remaining weak despite President Javier Milei's claims of recovery.
The setback has sharpened disagreement between Milei and leading experts over whether his shock-therapy reforms are reviving activity or masking continued fragility in the real economy.
The contraction follows a dramatic turnaround that had won investor support through fiscal tightening, deregulation and moves to normalise monetary and exchange-rate policy.
Beyond Milei's term, what can stop Argentina from falling back into its historic cycle of economic crisis?
With poverty soaring past 50%, can Milei's 'shock therapy' survive the public backlash before any economic recovery arrives?
Is Argentina's fiscal surplus an economic miracle or an illusion built on cuts that threaten future growth?