When Javier Miley entered the race for Argentina’s presidency, 108 leading economists said his policies could be a disaster. Three years later, the maverick president continues to prove them wrong.
As Argentina’s new president in December 2023, Milei faced a struggling economy due to corruption, inflation, excessive money printing and a bloated government. At that time, inflation was at 211% and exports were only $5 billion for the month. And GDP shrank 2.3% in the final quarter of the year, according to government data.
A signed letter by 108 economists from around the world, including Thomas Piketty and former Colombian Finance Minister José Antonio Ocampo, released before the 2023 elections, warned that Milei’s economic program was “fraught with risks that make it potentially very harmful to the Argentine economy and the Argentine people.” They also added in their letter that “however, while seemingly simple solutions may be attractive, they are likely to cause more real-world devastation in the short term, while significantly reducing policy space in the long term.”
Fast forward to 2026, and things are looking much better. Inflation fell to 34% in April and exports increased to nearly $9 billion in the same month. And GDP growth jumped to 4.4% last year. “The thing is, Milei really knows his stuff,” Evan Ellis, a research professor of Latin American studies at the Institute for Strategic Studies at the U.S. Army War College, told FOX Business.
ARGENTINA’S MILEI ELIMINATES DEFICIT, SALUTED AS MODEL FOR MUSK’S ‘DOGE’
Argentine President Javier Milei gestures during a meeting with young people from the Forum of Industrial Entrepreneurs of Paraguay (FEIP) organized by the Paraguayan Industrial Union (UIP) at the headquarters of the National Secretary of Sports in As (Daniel Duarte/AFP via Getty Images / Getty Images)
For this economic rebound to occur, Milei used policy levers similar to those President Ronald Reagan used when he took office in 1981. First, there was something called fiscal shock therapy. “Milei cut state subsidies, eliminated government departments, which resulted in a primary surplus,” Pete Earle, senior director of research at the American Institute of Economic Research, told FOX Business.
“The country has reduced financing of budget deficits,” Earle said. “The government reset its exchange rate with informal dollarization, eliminating organized labor unions, and began its external engagement by reopening its capital markets, which would lead to more competition, which would be better for everyone.”
“He was this weird combo who knew both the theory of minimizing government and the need to maximize individual liberty. He didn’t do things because he wanted votes,” Ellis said.
Presidential candidate Javier Milei of La Libertad Avanza raises a chainsaw next to Buenos Aires provincial gubernatorial candidate Carolina Piparo of La Libertad Avanza during a rally September 25, 2023 in San Martin, Buenos Aires, Argentina. (Tomas Cuesta/Getty Images / Getty Images)
“Although Milei’s economic policy has some similarities with Regan’s, he is quite different,” Javier Negre, owner of the newspaper La Derecha Diario, told FOX Business. Negre, who is close to Milei, said “Reagan was more established; Milei is an outsider.”
Who is Milei as a person? He has a direct approach when talking to people. “He’s not polite,” Negre told FOX Business. “He will tell you what he thinks.” He is also a very hardworking president. “He’s a cheap president and he works 20 hours a day,” Negre said. “He’s always on the phone.”
ARGENTINE JAVIER MILEI TURNS INFLATION ON HEAD, EVEN AS POVERTY GROWS
Argentina’s economic renaissance was also aided by the US Treasury’s $20 billion currency swap. These exchanges helped stabilize Argentina’s financial situation. currency because of its credibility. And in return, this credibility attracted foreign investors and more competition. In the last quarter of 2025, capital inflows reached a record high of $18.8 billion.
Under Milei, capital markets opened up to international markets and exports boomed. Notably, Argentina’s oil production increased to 882,200 barrels per day this year, up 32% from 667,000 barrels per day when Milei took office in December 2023. Likewise, natural gas production increased to 48,748 million cubic meters in 2025, up 11% from 43,985 million cubic meters cubes in 2023, according to the Argentina Energy Information website.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“The bottom line of Milei’s economic policies is that they work and can benefit from a similar model and thus make the world richer and better. Inflation fell apart, and that simple change fueled other things in a positive way,” Earle told FOX Business. “It’s one of the greatest gifts to the rest of the world, and they can see that it works; This is all extremely positive. »