Argentina's economy during the first two years of President Milei's government has gone through two distinct phases. It grew significantly in 2024 and reactivated economic activity, but this growth was cut short in the middle of last year when the government had to raise interest rates to defend the dollar. The economy stalled and has not yet reactivated, stated economist Miguel Kiguel in an interview with Radio Rivadavia, as reported by Agencia Noticias Argentinas. Kiguel also pointed out that 'the inflation number that came out today is very ugly,' referring to the 3.1% figure for Buenos Aires. 'People suffered a lot, especially due to public spending cuts and the fall in real wages, but until now there has been one big advantage: inflation really plummeted strongly in the first two years, probably more than was expected,' he said. In his view, 'there was a clear improvement; the economy suffered, but not so much.' Kiguel explained that last year left the economy with two realities: very dynamic sectors with high growth and investment, such as energy, agriculture, mining, and finance, and sectors suffering from adjustment, like industry and construction. He also noted that mass consumption has not rebounded, and many people have yet to see the benefits. To conclude, Kiguel stated that 'the dollar will be more stable' and urged for more modest expectations within the disinflation process.
