Argentina, under President Javier Milei since late 2023, has undergone sweeping economic reforms. Monthly inflation dropped sharply from 25% to just 2.3% by October 2025, and annual inflation, once the world’s highest at 211%, decreased to 31%—its lowest in eight years. The country achieved a budget surplus for the first time in 14 years as the economy grew by 6%.
International media and experts have described these developments as an "economic miracle." However, data from Argentina’s Central Bank reveal that in 2025, foreign investment turned negative for the first time in 22 years, reaching a net outflow of $1.5 billion over 11 months. More money is leaving the country than entering, despite improved economic figures. The main reason is the difference between economic stabilization and true long-term investment appeal.
Some companies had already decided to exit before Milei took office, but transactions were only completed in 2024–2025. Others took advantage of Milei’s policies—currency market liberalization made it easier to convert funds and repatriate them.
Long-standing structural issues stemming from decades of populism continue to deter investors. There is, however, one exception: the natural resources sector. Mining and energy are drawing major investments, with about $25 billion planned, as Argentina holds the world’s third largest lithium reserves.
Thus, while Argentina’s macro indicators are strong, questions remain over long-term confidence. The future will show if Milei’s achievements will lead to sustained growth.
