CHANGE

Argentina: the Making of an Economic Miracle?

Governing with economic prudence has revived growth, says Javier Milei, president of Argentina. If we succeed, many might label our achievements a “miracle”.

By the close of 2023 Argentina was teetering on the edge of a precipice, beset by a confluence of economic ills reminiscent of its most harrowing crises. The monetary overhang had ballooned to twice the level of 1975, which triggered the infamous Rodrigazo, an inflationary spiral that ushered in five decades of stagnation. The central bank’s interest-bearing liabilities had swelled to four times the monetary base, surpassing even the ratio of 1989 that precipitated hyperinflation. By the year’s end GDP was in free fall after 15 years of stagnation. Prices increased during 2023 by 211 percent.