The Milei effect, clear signs of economic recovery in Argentina

In the first quarter of 2025, the Argentine economy has begun to show strong signs of recovery after years of stagnation, uncontrolled inflation, and deep structural imbalances. Under the leadership of President Javier Milei, the country is experiencing a historic shift in its macroeconomic indicators. According to data from the National Institute of Statistics and Censuses (INDEC), Gross Domestic Product (GDP) grew by 5.8% year-on-year, representing a solid recovery compared to the accumulated deterioration during previous years.

This growth is not an isolated phenomenon, but part of a consistent pattern that spans various areas of the real economy.  Private consumption, the main driver of domestic demand, increased by a remarkable 11.6% year-on-year in the same period. Even more noteworthy is the growth in investment, measured as gross fixed capital formation (GFCF), which reached an extraordinary 31.8% year-on-year. This level of investment is especially relevant, as it indicates renewed business confidence in the macroeconomic climate and in the sustainability of the structural reforms implemented.

A trend reversal: consumption and investment lead the rebound

When observing the seasonally adjusted series, which compares quarter to quarter, improvements are also evident: GDP grew by 0.8% compared to the previous quarter, private consumption by 2.9%, and investment by 9.8%. This data confirms that this is not a simple statistical rebound, but a sustained recovery in progress. In addition, the national consumer confidence index, prepared by Torcuato Di Tella University, stood at 45 points in June 2025, surpassing the levels observed in the past two years and marking an increase from the 37 points recorded in June 2024.

The intention to purchase durable goods also shows a significant rebound, reaching 36.6 points, showing a renewed appetite among consumers for quality and durable goods. Meanwhile, the real estate and automotive markets show signs of dynamism: mortgages registered in May 2025 grew by 354% compared to the same month in 2023, and purchases of new automobiles increased by 61% year-on-year, reaching more than 56,000 units.

These indicators not only reflect an improvement in material living conditions, but also a change in expectations and in the economic rationality of agents. The austere monetary policy, reduction of the fiscal deficit, and reorganization of the State, together with price liberalization and trade deregulation, have begun to bear fruit. Contrary to catastrophic warnings, the economic "shock" implemented by Milei did not destroy the economy, but rather stabilized it, realigned incentives, and reactivated investment.

The hegemonic narrative versus economic reality

This process serves as a reminder that sustainable economic growth doesn't arise from public spending or artificial monetary issuance, but from clear rules, institutional stability, and respect for private property. The libertarian model that Milei promotes, inspired by the Austrian School and the principles of the free market, is showing concrete and measurable results.

Despite these achievements, opposition media have insisted for months on establishing the narrative of an alleged imminent economic catastrophe. However, the data categorically refute these claims. Once again, it is demonstrated that media operators have lied about economic performance: the Argentine economy is not collapsing, as they prophesied; on the contrary, it is moving forward thanks to the economic model that Javier Milei has had the courage to implement in a country accustomed to decades of populism, unsustainable subsidies, and inefficient state planning.

The evidence is clear. Argentina is standing and moving forward. The course set by President Milei is not only consistent with the principles of a free economy, but is beginning to rebuild the trust destroyed by decades of dirigisme and demagoguery. The challenge now is to maintain this course and deepen the structural reforms that will restore the country's lost dynamism.