Argentina faces 30% inflation as growth slows to 3.5%
Updated
Updated · The Wall Street Journal · May 10
Argentina faces 30% inflation as growth slows to 3.5%
13 articles · Updated · The Wall Street Journal · May 10
President Javier Milei's reforms are under strain as inflation stays in double digits, despite 4.4% growth in 2025, a primary fiscal surplus and a Fitch upgrade to B-minus.
The report says retail and manufacturing remain weak, country risk stays above 500 basis points, and investors demand sharply higher yields on bonds maturing after Milei's term.
It argues weak institutions, political uncertainty and limited demand for pesos are capping disinflation, even as deregulation, energy exports and mining investment support parts of the economy.
Why are businesses closing and jobs vanishing if Milei's reforms have attracted billions in foreign investment?
Can Milei’s shock therapy fix Argentina’s deep institutional distrust, or is a return to populism inevitable?
Argentina’s inflation has plummeted, but real wages have collapsed. Is this economic success or a recession engineered for the working class?