One Year Into Milei’s Chainsaw Surgery Splits Argentina Between Pain And Promise

Argentina might be three-time World Cup champions, but its economy remains its toughest opponent. One year into Javier Milei’s presidency, his controversial reforms are taking shape — with President-elect Trump hailing his “fantastic job” and Department of Government Efficiency (DOGE) supporters gazing upon the shock therapy experiment as a potential “formula to fix the US government.”

• In one year, Argentina’s monthly inflation plummeted from a staggering 25.5% to 2.7% — while the country’s stock index soared 140%. Even the International Monetary Fund (IMF) has praised the “better-than-expected results.”
• Conversely, some changes proved bitter as poverty rates surpassed 50% in September, a 27% surge from the end of last year — with over 30K government employees losing their jobs.

The road ahead: While Milei’s chainsaw cuts through Argentina’s bureaucracy, CNN highlights concerns about his volatile personality, an overvalued peso, and stringent capital controls, which are spooking foreign investors eyeing $50B in potential deals. “The country is still in a recession,” notes a German think tank, with the IMF projecting a 3.5% GDP contraction this year, following last year’s 1.6% squeeze. However, with projected 5% growth next year, optimism is climbing, and many Argentines believe the pain will be worth it.