Argentina’s economy grows for 3 years straight, ending long period of stagnation

“Argentina’s economy is on track to grow for three consecutive years (2025 to 2027) for the first time in nearly two decades, according to a new World Bank forecast. The country’s real (inflation-adjusted) GDP grew 4.5 percent in 2025 and is projected to grow 2.1 percent in 2026 and 3 percent in 2027. The World Bank attributes the growth to ‘fiscal consolidation, tax reforms and a more open economy.’” So reports The Doomslayer.

Argentina is one of the world’s more regulated countries (although less so now than it was a few years ago), and has been for generations. Over those generations, Argentina had one of the world’s slowest economic growth rates, often experiencing recessions.

Recently, Argentina has deregulated a fair amount, and seen economic growth as a result. But Argentina remains a relatively complicated and burdensome place to do business, which reduces its rate of economic growth. Argentina’s president, who strongly supports deregulation, was previously not able to get the country’s congress to approve deregulation in some areas, because his party controlled only a minority of seats in Congress.

Three years ago, Argentina was in a recession, and experiencing hyperinflation. But in 2023, it elected Javier Milei as its president. Milei got rid of lots of government red tape and fired many bureaucrats. Due to Milei’s policies, Argentina’s inflation rate fell from 25% per month to less than 3% per month. Now, Argentina’s economy is growing again, and poverty is falling, even as Argentina slashes tariffs, eliminates trade barriers, and balances its budget, which used to have a large budget deficit.

Argentine exports have risen substantially.

Before President Milei was elected in 2023, Argentina experienced decades of decline. Argentina had once been one of the richest nations on earth, richer than Canada, Australia, and all but a handful of countries. But by the time Milei was elected, Argentina had fallen behind around 70 countries, including countries that were once much poorer than it, such as Turkey, South Korea, and Panama. Arbitrary regulations and red tape did much to cause its economic decline.

Milei had his work cut out for him — Argentina ranked very low in economic freedom — 158th out of 165 countries ranked, in one study, and 144th in another. Now, Argentina ranks about 106th, a substantial improvement, although still below average.

When Milei took office, Argentina had almost the highest inflation rate in the world. It still has a relatively high inflation rate, but today, its inflation rate is much lower than in some other countries, like Venezuela, Iran, Sudan, and South Sudan.