Industry leaders urge Milei to boost production, call for assistance

Industrial leaders have urged Argentina's President Javier Milei's administration to introduce policies to boost production and alleviate the impacts of opening the economy, following a sharp decline in inflation. Since taking office nearly three years ago, Milei's government has managed to bring inflation down from triple-digit levels to approximately 30 percent annually, achieving fiscal balance at the expense of significant cuts to spending on pensions, healthcare, education, and infrastructure.

However, the industrial sector has suffered the most from Milei's economic policies, losing around 90,000 jobs since August 2023.

At an event marking National Industry Day, Martín Rappallini, president of the Union Industrial Argentina (UIA), stressed the importance of stability for Argentina but emphasized that the economy cannot be measured by inflation alone. Instead, he called for attention to economic activity. Milei has dismissed the concerns raised by industrialists, asserting that jobs lost in one sector will be created in another under international competition conditions.

The La Libertad Avanza government, led by Milei, has promoted major investments through tax cuts and financial incentives via the RIGI scheme. However, these investments have primarily benefited the mining sector, which has limited impact on employment. In the first half of the year, Argentina's economy grew by 1.9 percent, with mining, fishing, and agriculture leading the growth. Meanwhile, manufacturing output declined by 2.2 percent over the same period.

Since Milei took office, about 30,000 companies have closed, according to industry data. Industrialists have called for the government to cut taxes, reduce energy costs, invest in infrastructure, and improve credit access for domestic producers to compete with imports. Rappallini emphasized the need for a bridge between Argentina's past economy and the competitive economy the sector aims to build.

He also called for the government to address the high level of debt among industrial companies, noting that non-performing loans in manufacturing have increased fivefold over 18 months, from 0.7 percent to 3.8 percent as of June 2026.

Rappallini urged Milei and his government to show respect, highlighting the frequent "disparagement" and "attacks" by the President against sector members who have criticized his economic plan. He stressed that while differences and debates about policies are acceptable in a democracy, respect is essential for democratic coexistence.