IMF backs Milei but urges Argentina to extend benefits of growth to workers

The International Monetary Fund (IMF) has backed Argentina's President Lionel Milei but emphasized the need to extend the benefits of economic growth to workers, according to a spokesperson for the organization. IMF officials have praised the country's efforts to stabilize the economy in a challenging environment, highlighting a significant decline in inflation, stronger external reserves, and fiscal discipline.

These achievements, according to the IMF, have laid a solid foundation for sustainable growth. The IMF's technical mission concluded its work on Argentina's third review of its program on September 29, following meetings in Buenos Aires from September 21 to 29. Argentina, the Fund's largest debtor, had agreed to a US$20-billion, four-year lending program with the IMF in 2025.

The IMF's technical team has already conducted two reviews of the program's implementation, and discussions are ongoing to finalize a staff-level agreement for the third review. Approval would allow for a further disbursement of around $900 million.

The IMF and Argentina recognize that strengthening the country's resilience requires continued work, including the broadening of economic recovery. Currently, growth has been concentrated in energy, mining, and agricultural sectors, but the IMF stresses the importance of ensuring growth becomes more evenly distributed across all sectors.

The IMF forecasts a 3.5% economic growth for Argentina in 2026. The focus of discussions is on consolidating the gains from stabilization and further broadening those gains throughout the economy. This would require increased investment to support durable growth, job creation, and better opportunities for Argentines. Despite these positive aspects, critics of the Milei government point to the closure of around 30,000 companies since the President's inauguration in December 2023, amid concerns about rising poverty and extreme poverty in the first half of 2026.