Argentines are increasingly positive about the Milei economy

Argentines are turning more optimistic about the future of their nation’s beleaguered economy, a shift that stands to embolden austerity-minded President Javier Milei ahead of midterm elections later this year.

Nearly half of Argentines — 49 percent — said in December that they expect the economy to improve over the next six months, an eight-point increase from October, according to LatAm Pulse, a survey conducted by AtlasIntel for Bloomberg News. The share that expects it to worsen fell to 39 percent from 53 percent two months prior.

While only 19 percent currently rate the economy as good, it is the first LatAm Pulse survey in which the number of Argentines expressing a positive outlook about the next six months has exceeded those expecting worse times ahead.

A growing sense among consumers that the coming months won’t be as bad as once thought is among the factors fuelling the optimism. The number of Argentines who said they expect to make fewer purchases over the next six months fell to 43 percent in December from 57 percent in October.

Milei is entering 2025 with momentum on his side that the more positive outlook is set to fortify, potentially bolstering his political strength ahead of legislative elections later this year. 

Argentina exited a brutal recession in the third quarter of 2024, and economic activity is picking up while inflation continues to cool. The central bank last week unveiled a US$1-billion repurchase agreement with five international lenders, including some Wall Street banks, a vote of confidence from markets. Milei is also anticipating additional support from the US once president-elect Donald Trump takes office later in January.

The libertarian president’s approval rating remained steady at 47 percent in December, the poll found.

AtlasIntel surveyed 1,842 people in Argentina between December 27-31. The poll has a confidence level of 95 percent and a margin of error of plus or minus two percentage points.