Milei concedes on disability law, reallocates funds amid budget fight
Published 1 d ago7 sourcesEvidence: Reported
The Financial Times assesses Argentina's Milei administration, crediting fiscal consolidation but noting the economy remains stagnant and the middle class bears the brunt. The report signals a divergence between macro stabilization and broad-based recovery, raising questions about political sustainability ahead of midterms.
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Argentina's fiscal consolidation under President Milei has reduced inflation and increased central bank reserves, but economic growth remains stagnant, with employment, real wages, and consumption declining. Milei has acknowledged slower-than-expected disinflation and ongoing hardship, marking a shift from earlier optimistic rhetoric. The divergence between macroeconomic stabilization and microeconomic vitality raises questions about the sustainability of the adjustment and its political viability.
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