Argentina's economy has recorded a remarkable turnaround under President Javier Milei, with inflation falling sharply, economic growth returning, and the country's public finances moving into surplus after years of chronic deficits.

When Milei took office in December 2023, he inherited one of the most troubled economies in the world. Inflation was running at more than 200%, poverty was rising, the government was heavily indebted, and investor confidence had collapsed. Milei’s administration responded with a programme that many orthodox economists said would not work. It included spending cuts, deregulation, fiscal restraint, and market reforms aimed at stabilising the economy and restoring confidence.

The reforms implemented by the eccentric Milei - he famously owns five cloned dogs - seem to have largely worked.

One of Milei’s most significant achievements has been the collapse in inflation. Consumer price growth, which had approached 300% at the start of 2024, has fallen dramatically. Inflation is expected to decline to around 30% during 2026, which would be Argentina's lowest annual inflation rate in almost a decade. The reduction in inflation has been widely regarded as the administration's greatest economic success.

Argentina has also achieved something that had eluded successive governments for years: a budget surplus. Official figures show the country recorded its first fiscal surplus in more than 14 years during 2024. The overall surplus amounted to 0.3% of GDP, while the primary fiscal balance reached 1.8% of GDP. Fiscal balance has become the central pillar of Milei's economic strategy and has helped improve confidence among investors and international lenders.

Economic growth has returned as stability has improved. Argentina's economy expanded by 4.4% during 2025, driven by agriculture, mining, energy production, and financial services. Economists expect growth to continue through 2026, supported by rising exports, increased investment, and expanding mining and energy sectors.

Investor sentiment has strengthened alongside the improving economic data. Argentina's country risk premium has declined significantly as markets have gained confidence that the government will maintain fiscal discipline. The International Monetary Fund has also noted progress in Argentina's stabilisation programme, while analysts increasingly view the country as being on a more sustainable economic path than at any point in recent years.

While significant social and economic challenges remain, the positive economic indicators are difficult to ignore. Inflation is down sharply, growth has returned, government finances have stabilised, and investor confidence has improved. For supporters of Milei's reforms, the early results suggest that one of the world's most troubled economies may finally be moving in the right direction.

Presidential elections are due to be held next year, and current polling indicates that Milei is likely to emerge victorious.