18/06/2026 09:42 - Economia
Ejecutivos empresariales debatiendo en una sala de reuniones moderna con gráficos económicos sobre la mesa. Ambiente corporativo profesional con luz natural. Expresiones faciales de análisis y preocupación. Estilo fotoperiodismo.
With less than a year until the 2027 elections, Argentine business circles are delivering a nuanced assessment of Javier Milei's administration. While celebrating macroeconomic order and exchange rate stability, they express concern over what they consider a "naive" opening of the economy and the deterioration of public infrastructure.
Context for international readers: Javier Milei, an economist and former television pundit, won the presidency in 2023 on a libertarian platform promising to shrink the state dramatically. His "shock therapy" approach included deep spending cuts, currency devaluation, and deregulation. Argentina has long struggled with chronic inflation, debt defaults, and economic instability, making Milei's experiment closely watched by global markets.
According to private sector sources consulted by Ámbito (a leading Argentine financial news outlet), most business leaders positively value the government's economic direction. The most praised points include:
One of the most controversial points for local business leaders is how the government handles competition with Chinese companies. Executives from major local groups warn that "we are not only competing with companies, but also with the Chinese State", which they claim stands behind that country's corporations.
Context: China is Argentina's second-largest trading partner after Brazil. The relationship has been complex, with Argentina seeking Chinese investment while local industries complain about unfair competition from state-subsidized Chinese imports.
The most cited case is the Vicuña District copper megaproject in San Juan province, where the mining consortium Lundin Mining and BHP awarded Chinese companies the installation of Campamento Batidero, a modular mini-city with initial capacity for 2,500 beds. The winner was a consortium led by state-owned Power China.
Local suppliers denounce that fully equipped prefabricated steel modules will be imported from China, which they claim "destroys local procurement". The Argentine Industrial Union (UIA) and the Argentine Construction Chamber expressed their disagreement with this decision.
The Argentine Association of Budget and Public Financial Administration (ASAP) documented that direct real investment by the national State in provinces collapsed by 72.5% in April 2026 compared to the same month the previous year. This is the most severe percentage cut in 18 months.
Context: Argentina's infrastructure has historically been underfunded. Roads, ports, and public works are critical for an export-oriented economy. The government's libertarian philosophy holds that private enterprise should build infrastructure, but critics argue many projects aren't profitable enough to attract private investment.
The government's position, driven especially by Deregulation Minister Federico Sturzenegger, maintains that private actors will carry out all necessary works. However, business leaders consider this "dogmatic" view delays urgent solutions and deepens the so-called "Argentine cost" (the extra expenses businesses face due to infrastructure gaps, bureaucracy, and instability).
Context: SMEs (Small and Medium Enterprises) are the backbone of Argentina's economy, accounting for approximately 70% of employment. They are particularly vulnerable to economic volatility and import competition.
The Center for Argentine Political Economy (CEPA) revealed alarming data about the most vulnerable productive sector:
| Period | Employer Reduction | Daily Average |
|---|---|---|
| Nov 2023 - Mar 2026 | -26,448 companies | 31 closures per day |
| Companies up to 500 employees | 99.75% of total closures (26,382 companies) | |
| Companies over 501 employees | 0.25% of total (66 cases) | |
Source: CEPA based on data from the Superintendency of Labor Risks.
President Milei will travel to the United States in early July 2026, invited by Donald Trump for the 250th anniversary of American independence. However, diplomatic sources consulted by Ámbito warn that relations with the first world power "are not at their best moment".
Context: Milei has aligned Argentina strongly with the United States and Israel, a significant shift from previous administrations that maintained more balanced relations between Washington and Beijing. This realignment was meant to secure U.S. support and investment.
White House officials express that the libertarian administration would not be fulfilling commitments made to Republicans after the USD 20 billion backing that helped stabilize the foreign exchange market in 2025.
The most contentious point is the dredging concession for the Hidrovía (a strategic waterway system connecting Argentine ports to the Atlantic) awarded to the Jan De Nul consortium, accused of having ties to Chinese companies. The competing consortium DEME offered a rate 17.4% lower, which would represent savings of USD 2.5 billion for Argentina and users.
The newspaper The Floridan published an article by journalist Javier Manjarres, close to Secretary of State Marco Rubio, titled "Friend or Foe?" about the Milei-Trump relationship.
Business circles are already discussing the 2027 elections. Some sectors are looking for figures who ensure continuity of the model (fiscal balance, openness, alignment with the capitalist world) but within a less "dogmatic" framework than that proposed by the libertarian leader.
The equation is complex: country risk at 425 basis points (minimum since April 2018), World Bank backing with guarantees for USD 2 billion and IDB with USD 500 million more, contrast with massive SME closures and concern about unfair competition from abroad.
About the 2027 elections: Argentina's presidential elections are scheduled for October 2027. Milei's re-election bid would depend on whether his economic model delivers tangible benefits to voters while the social costs of austerity become more apparent.
Source: Ámbito, June 18, 2026.
Alfredo S. Quiroga
