Argentine Optimism Surges as Economy Shows Signs of Improvement, Bolstering Milei

A wave of optimism is sweeping through Argentina as citizens express growing confidence in the nation’s economic future, a shift that could provide a significant boost to President Javier Milei ahead of crucial midterm elections later this year, Bloomberg reports.

A recent survey conducted by AtlasIntel for Bloomberg News, known as LatAm Pulse, reveals a dramatic turnaround in public sentiment. In December, nearly half of Argentines (49%) expressed optimism about the economy improving over the next six months. This represents an eight-percentage-point jump from October, when only 41% held that view. Conversely, the number of Argentines who believe the economy will worsen dropped significantly from 53% to 39% during the same period.

This marks the first time in the LatAm Pulse survey that those with a positive outlook outnumber those expecting things to deteriorate. While only 19% of Argentines currently rate the economy as “good,” the shift in forward-looking sentiment is notable.

This newfound optimism appears to be driven, in part, by a feeling among consumers that the coming months may not be as bleak as previously feared. The number of Argentines who anticipate reducing their purchases over the next six months fell sharply from 57% in October to 43% in December.

This positive outlook provides President Milei with considerable momentum heading into 2025. The improved public perception could strengthen his political standing as he faces key legislative elections later this year. Milei’s austerity-focused economic policies have faced some resistance, but this growing optimism could translate to greater public support.

The shift in sentiment follows encouraging economic news. Argentina officially emerged from a severe recession in the third quarter of 2024, with signs of economic activity increasing. Inflation, a long-standing challenge for the country, is also showing signs of cooling.

In a further sign of growing market confidence, the Argentine central bank recently announced a $1 billion repurchase agreement with several international lenders, including some major Wall Street institutions. President Milei is also anticipating increased support from the United States once President-elect Donald Trump takes office later this month.

Despite the shift in sentiment, Milei’s approval rating remained steady at 47% in December, according to the poll.