Thanks to the Government of Javier Milei, Argentina's economy shows a remarkable transformation. Practically all key indicators reflect a clear improvement compared to 2023 and early 2024.
Analysis firms, private banks, and economists from various backgrounds acknowledged this success, which seemed almost unattainable when Javier Milei assumed the presidency.
Although the advances in economic and financial terms are undeniable, some reports still generate interest. An example is the analysis published this week by the Bank of Spain (BdE), led by José Luis Escrivá, former minister of the Government of Pedro Sánchez, who has had several disagreements with Milei in the past.
In an exercise of professionalism and objectivity, the BdE acknowledged that Argentina's financial variables have improved notably, that the economy shows clear signs of recovery, and that these advances are the result of the adjustment plan and the structural reforms promoted by Javier Milei's Government.
The report begins by highlighting that "the Government's adjustment plan (public spending cuts and strong devaluation of the official exchange rate) managed to quickly reduce inflation, which went from 25% month-on-month in December 2023 to 2.2% in January 2025".
The fiscal discipline implemented by Milei, with cuts equivalent to 5% of GDP in public spending, a historic reduction, curbed the growth of the monetary base, historically used by previous governments to finance the public deficit.
Additionally, the report delves into that "inflation expectations have converged toward a rate of 2% monthly, which coincides with the pre-announced monthly devaluation rate of the official exchange rate effective until January 31".
