President Javier Milei is a unique figure in Argentine economic history — not necessarily due to his libertarian roots, which are more declarative than substantive in his financial decisions, but because he has enacted a policy of fiscal austerity and still remained popular enough to win the midterm elections by a landslide.

However, in Argentina, today’s political capital could become tomorrow’s liability if the president fails to acknowledge that macroeconomic consolidation is a political endeavor as well as an economic one. 

Persistently high inflation, maturities totaling around US$20 billion during 2026, and uneven growth across sectors with minimal job creation are the three main economic challenges pressuring the government’s political standing.

Perhaps the best metaphor for Argentina’s relationship with its financial situation is karma. No matter the government, managing public finances remains one of the nation’s primary challenges.

2025 was no different: the government reached an agreement with the IMF for US$20 billion in April. That was immediately followed by the announcement that it was modifying the country’s exchange restrictions,........

© Buenos Aires Herald