For The Economist, Javier Milei is close to “transforming” the Argentine economy

The English newspaper analyzed the course of libertarian management, focusing on the negotiation with the IMF and the elimination of exchange restrictions

04/15/2025 – 09: 38hs

After the agreement with the International Monetary Fund (IMF) and the opening of exchange ratethe British newspaper The Economist published a new editorial on the government. “Milei seems to be more likely to achieve their transformation of the Argentine economy,” they said.

This Tuesday, the multilateral agency will disburse US $ 12,000 million to Argentina. “Many of Argentina’s previous 22 programs with the IMF ended up in failure. Milei’s history gives some credibility to his insistence that this time it will be different, “they analyzed.

For the newspaper these funds “will allow the Central Bank to defend a more flexible exchange regime“.” It’s a bold, but risky strategy, “he described.

He also mentioned that when assuming, Milei “inherited an uncontrolled public spending, a triggered inflation and a complex network of capital controls and multiple exchange rates. “In that line, The Economist stressed that so far from the management” drastically reduced spending, achieving a strong decline in inflation. “

In another section of the article, the British newspaper said that Milei now seeks to solve the weak point of its economic program: “capital controls and overvalued weight.”

“He was never so close to turning Argentina into a normal economy. But the global economic chaos threatens its reforms, and politics can still play against it, “said The Economist and added:” The commercial war launched by Trump caused a strong fall in the price of oil and threatens the prices of agricultural products. That weakens two of the main Argentine exports and hinders the accumulation of reserves. “

In that line, he also highlighted the visit of the United States Secretary of the Treasury, Scott Besent, as a “political” backup gesture to libertarian management.

What did The Economist say about the opening of the stocks to the dollar

Article The Economist assured that the opening of the exchange rate “could attract foreign investment” although it warned of “the risk of sudden capital exits.” This Monday, the official dollar operated at $ 1230.

“The reforms should allow the Central Bank to accumulate their own reserves, and not only those provided by the IMF. Argentina needs those reservations to be able to borrow in international markets, something that hopes to do since the beginning of 2026, when debt overcome for about 19,000 million. The first indications are positive: Argentine bonds in dollars rose about 3% in the opening, Sign that markets see the plan with good eyes“They indicated.

“The markets will closely follow the regional and legislative elections in search of signs of an eventual return of Peronism,” they warn.

The challenges that Milei faces before the legislative elections

In another section of the British newspaper, he stressed that Javier Milei maintains an approval level of 45%, although in decrease. “The markets will closely follow the regional and legislative elections in search of signs of an eventual return of Peronism,” they warned.

The Economist stressed that the president “has few allies” and that his main political support comes from Mauricio Macri’s party, although there are differences.

“He has in his favor that the Peronist opposition is going through an internal strong. The road is difficult, but for now, surprisingly, Milei seems closer than ever to achieve its economic transformation“The article closed.