Milei's trade opening drives bankruptcies and erodes government popularity
About 32,300 companies have closed in Argentina since December 2023, and economists see a recession in the third quarter, Folha reports.
Translated from the Portuguese original by the Panorama newsroom. Read in Portuguese
Summary written by the Panorama newsroom from the sources listed below. Facts are attributed to the original publications.
The economic opening policy of Argentine President Javier Milei has been multiplying business closures and increasing disapproval of the government, according to a report published by Folha de S.Paulo.
The newspaper visited Eseka, a family-owned sock and underwear factory in Buenos Aires. Since Milei took office almost three years ago, sales have fallen about 40%, hit by weak demand and competition from cheaper imports. The company cut about 30% of its workforce, and more than half of its knitting machines are idle.
According to the think tank Fundar, about 32,300 companies, roughly 6% of the total, closed between December 2023 and July of this year. In the first nine months of 2026, consumption fell 2.7% year over year, according to the consultancy Scentia.
The figure matters because household consumption accounts for about two-thirds of Argentina's GDP. Economists say the country probably entered a recession in the third quarter, which tests voters' patience a year before the October 2027 presidential election, in which Milei is expected to seek reelection.
"The situation is critical," said businessman Ricardo Kuchikian, owner of Eseka.