The Argentine government, led by President Javier Milei, has projected a 4% growth in gross domestic product (GDP) and 18% inflation for the year 2027, according to a recent budget proposal. These figures contrast with the World Bank's revised forecast, which lowered Argentina's expected growth from 4.1% to 3.7% in June. Milei, who took office in December 2023, claims to have achieved macroeconomic stability through austerity measures. These included reducing public spending, closing state agencies, laying off tens of thousands of workers, and causing a significant drop in the purchasing power of wages and pensions. As a result, annual inflation has fallen from 161% to 33.5% by August 2024. 2027 will be the final year of Milei’s current term, and he has expressed interest in seeking a second term. The budget proposal predicts a positive financial outcome, which would mark the first time in Argentina’s history that the country would achieve four consecutive years of budget surplus without defaulting on its debts. However, the economic performance varies across different sectors. In June, economic activity rose by 0.8% after a challenging spring, but the GDP growth was only 2.7% compared to the same period last year—far below the 5% the government had predicted in its 2026 budget proposal. Argentina’s economy is largely driven by mining and agriculture, while household consumption and industrial activity are underperforming. The influential Argentine Industrial Union (UIA) recently reminded Milei that the economy is not solely measured by inflation. According to the UIA, industrial activity is currently 10% below its 2022 levels, with some sectors experiencing declines of 25 to 30%. Since August 2023, the industrial sector has lost 90,000 salaried jobs. Unions report that about 30,000 small and medium-sized enterprises have closed over the past three years, along with 300,000 jobs across all sectors. In July, manufacturing activity fell by 4.9% compared to the same period in the previous year, and the construction sector declined by 4.5%, according to the National Institute of Statistics and Census (Indec).