{
  "id": 8272101,
  "title": "Milei’s Presidency at risk from stalling Argentina economy",
  "url": "https://urgent.news/2026/09/18/mileis-presidency-at-risk-from-stalling-argentina-economy",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T16:29:11.000Z",
  "source": {
    "name": "Buenos Aires Times",
    "slug": "buenos-aires-times",
    "url": "https://www.batimes.com.ar/news/economy/mileis-presidency-at-risk-from-stalling-argentina-economy.phtml"
  },
  "original_language": "en",
  "account": "With just a year remaining until President Javier Milei's re-election bid, concerns are mounting that Argentina's economy may stall, putting the libertarian leader's political future at risk. In the second quarter, the country's GDP contracted by 0.6 percent, marking the first decline in two years and raising questions about whether Milei's economic policies can deliver the growth needed to secure another term in October 2027.\n\nAfter being elected on a platform of austerity and free markets, Milei's \"shock therapy\" helped curb inflation, but now voters are increasingly worried about the weak jobs market. Despite a 2 percent rise in output from a year earlier, driven by surging exports of energy and agricultural products, imports fell, highlighting the uneven nature of economic recovery.\n\nEconomy Minister Luis Caputo celebrated the growth across 13 of 16 sectors in the first half of the year, but the latest GDP figures are seen as insufficient to quell political concerns. Jimena Zuniga, an Argentina economist at Bloomberg Economics, said the numbers fall short of dispelling doubts about the government's fiscal and market reforms. Investors are wary that weakening support for Milei's programme could lead to a reversal of reforms after the 2027 election.\n\nLeftist opponents are seeking to capitalize on rising unemployment and weak household incomes as central issues in the upcoming election. Carlos Melconian, director of MacroView SA, warns that even without a recession, the outlook for households remains grim. Annual inflation has eased to 34 percent, down from over 200 percent when Milei took office, but corruption and unemployment have surpassed inflation as voters' top concerns, according to an AtlasIntel poll.\n\nMilei remains focused on his goal of pushing inflation below a monthly rate of one percent, supporting a strong peso policy despite the trade-offs for growth. The currency weakened marginally against the US dollar in the year to August, while consumer prices rose by 21 percent, with official interventions in bond and futures markets bolstering the peso's value.\n\nHowever, Milei's opponents are increasingly vocal about the government's approach, with Buenos Aires Governor Axel Kicillof branding it a \"criminal, suicidal policy of deindustrialising the country.\" Opposition lawmakers have forced a session in Congress to address rising household indebtedness and loan delinquencies, though no relief proposals have been enacted yet.\n\nMilei points to strong growth in agriculture, energy, and mining as evidence of an improving economy, while retail, construction, and manufacturing sectors, which employ more people, are shedding jobs. Defaults on consumer loans have surged, and retail, construction, and manufacturing account for nearly half of Argentina's registered private salaried employment.\n\nThe government has lowered its 2026 growth forecast from five percent to three percent, with economists surveyed by the Central Bank expecting closer to two percent. Osvaldo Giordano, president of the IERAL economic institute at Fundación Mediterránea, anticipates the economy will avoid recession but will likely remain stagnant this quarter. Giordano warns that Argentines' patience for bad years is thin, making Milei vulnerable heading into the election.",
  "summary": "One year out from his re-election bid, the economic recovery that has underpinned President Javier Milei's popularity is stalling. Leer más",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}