Domain changed to archive.palanq.win . Feb 14-25 still awaits import.
[10 / 0 / 1]

Argentina's Javier Milei Keeps Proving His Critics Wrong

No.1419652 View ViewReplyOriginalReport
https://www.newsweek.com/argentinas-javier-milei-keeps-proving-his-critics-wrong-2095695

Just months ago, Argentina seemed destined for another economic collapse: soaring poverty, runaway inflation and dire warnings from economists that President Javier Milei's radical austerity measures would choke growth. Instead, the economy is expanding at a pace few thought possible — leaving Milei's legions of critics scrambling for explanations.

In a stunning reversal, Argentina's economy posted a 7.6 percent year-over-year growth rate in the second quarter of 2025 — its strongest in nearly two decades — fueled by deregulation, sharp cuts to public spending and the loosening of currency controls. Retail sales, manufacturing and finance all surged, helping consumer spending jump nearly 3 percent from the previous quarter.

Since assuming office in December 2023, the firebrand libertarian economist has slashed government expenditures and secured a $20 billion deal with the International Monetary Fund (IMF). His administration promised to dismantle decades of state intervention in favor of free markets — policies that many observers warned would deepen recession and spark social unrest.

Part of the turnaround has been Milei's dismantling of el cepo, the restrictive system of exchange controls first imposed in 2011 that prevented companies from moving profits abroad and limited Argentines' access to dollars.

After he lifted the restrictions, the peso was allowed to float within a managed band, narrowing the gap between official and black-market exchange rates. Reserves at the central bank climbed to their highest level in two years, bolstered by IMF funds, a $5 billion swap line with China and fresh loans from multilateral banks.

.