December 2025
Argentina’s Elections: A Vote of Confidence in Milei
Argentina’s 2023 presidential election marked a decisive break from decades of economic instability, chronic fiscal deficits and recurring sovereign crises. After inflation surged above 200%, reserves collapsed and the fiscal deficit widened, voters turned to Javier Milei, a political outsider promising strict fiscal discipline and sweeping liberalisation. His administration moved quickly, implementing deep spending cuts, subsidy reductions and a sharp currency adjustment, while loosening capital controls for the first time in years. These measures delivered rapid stabilisation, including a return to fiscal surplus and a sharp fall in inflation, although the adjustment brought significant short-term economic pain.
By 2025, political pressures mounted as recessionary effects and high-profile scandals eroded public confidence, culminating in a setback in the Buenos Aires provincial elections. However, Milei’s strong performance in the October midterms restored momentum, strengthening his congressional position and signalling continued voter support for his reform agenda. With improving macro indicators, renewed political capital and an emerging energy boom centred on Vaca Muerta, Argentina has entered a new phase—creating a landscape that investors, including UEM, are monitoring closely. Find out more in this insight.
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