Milei's Economic Model Falters as Manufacturing Sector Suffers

Argentina's economy is at a critical juncture under President Javier Milei's administration. Unlike previous periods, volatility in the U.S. dollar and high inflation are no longer the main concerns.

Inflation has shown signs of decreasing, coming in at 1.9% in June, but the real economy remains a major issue. The manufacturing sector, which accounts for 10.8% of employment, has been hit hard, with industrial output falling by 7% between November 2023 and June 2026.

Other sectors such as retail and construction have also struggled. Retail saw an 8.47% decline in sales between November 2023 and May 2026, while construction fell by 20%. These sectors account for nearly 38% of employment in Argentina.