Red alert for Milei: consumption stays flat as credit fails to bounce back
With household defaults at record highs, lenders would rather refinance existing debt than hand out new loans La entrada Red alert for Milei: consumption stays flat as credit fails to bounce back se publicó primero en Buenos Aires Herald .
Argentina's economy experienced a surge in consumption due to credit in late 2024 and early 2025. However, this trend has since slowed and reversed, driven by volatile interest rates and a sharp rise in household defaults. Since then, Argentina's new government under Javier Milei has seen no significant improvement in credit or consumption, leading to an uneven recovery concentrated in energy, mining, and farm sectors.
Peso loans fell 1% month-on-month and 1.3% year-on-year, with commercial loans dropping 0.3% month-on-month and 1% year-on-year. Personal loans fell 0.7% month-on-month and 5.4% year-on-year, marking ten consecutive months of falling balances in real terms. Credit card use dropped 3.7% month-on-month and 9.8% year-on-year, with lenders being cautious about approving new credit lines.
Mortgage lending, however, rose for the second month in a row, with a real increase of 2.3% and a year-on-year jump of 43.7%.
Written by urgent.news from Buenos Aires Herald's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Red alert for Milei: consumption stays flat as credit fails to bounce back buenosairesherald.com
