What Happened to Argentine Republic?
Argentina has undergone a radical transformation since Javier Milei's election as president in December 2023, implementing 'shock therapy' economic reforms to combat hyperinflation and fiscal deficits. While these measures have led to a significant reduction in inflation and a fiscal surplus, they have also sparked widespread protests over austerity, labor reforms, and a rise in initial poverty rates. The nation continues to navigate economic stabilization efforts, social unrest, and a shift in its international relations, including its recent withdrawal from the World Health Organization in March 2026.
Quick Answer
Since December 2023, Argentina has been under the presidency of libertarian Javier Milei, who initiated drastic economic 'shock therapy' to tackle hyperinflation and a large fiscal deficit. These policies have successfully reduced annual inflation from over 200% to around 30% by late 2025 and achieved a fiscal surplus. However, they have also triggered significant social unrest, widespread protests against austerity and labor reforms, and a temporary increase in poverty. As of March 2026, Argentina is grappling with ongoing strikes, such as a nationwide aviation strike, and has formally withdrawn from the World Health Organization.
📊Key Facts
📅Complete Timeline15 events
Javier Milei Wins Presidential Runoff Election
Libertarian economist Javier Milei wins the presidential runoff election with 55.9% of the vote, signaling a drastic shift in Argentina's political and economic direction.
Javier Milei Inaugurated as President
Milei is sworn in as Argentina's 59th president, inheriting an economy with annual inflation surpassing 200% and immediately announcing 'shock therapy' measures.
Decree of Necessity and Urgency (DNU 70/2023) Enacted
President Milei signs a sweeping decree to deregulate the economy, including repealing rent control laws and proposing significant labor reforms, facing immediate legal challenges and public opposition.
First General Strike Against Milei's Reforms
Tens of thousands participate in a nationwide general strike organized by the CGT (General Confederation of Labor) to protest Milei's austerity measures and deregulation package.
Annual Inflation Peaks at 289%
Argentina's annual inflation rate reaches a peak of 289%, reflecting the severe economic challenges inherited by the Milei administration.
Senate Passes Milei's Reform Package Amid Protests
Argentina's Senate narrowly passes Milei's comprehensive reform package, including privatization and tax breaks, amidst violent clashes between protesters and police outside Congress.
Argentina Achieves Primary Fiscal Surplus
For the first time in 14 years, Argentina records a primary fiscal surplus of 1.8% of GDP, a key achievement of Milei's austerity policies.
IMF Approves New $20 Billion Loan Program
The International Monetary Fund approves a new 48-month Extended Fund Facility for Argentina totaling $20 billion, signaling confidence in Milei's economic overhaul.
UN Experts Express Concern Over Civic Space
Several UN experts voice concern over the deterioration of civic space in Argentina since December 2023, citing repression of protests.
Milei's Party Gains in Midterm Elections
La Libertad Avanza, President Milei's party, wins a significant victory in midterm elections, gaining more seats in Congress and bolstering his ability to push reforms.
Labor Reforms Postponed Amid Protests
Massive protests led by the General Confederation of Labor (CGT) against a proposed labor reform package lead the government to postpone legislative debate until 2026.
Mass Protests Against Labor Reforms Continue
Thousands protest in Buenos Aires against labor reforms that would restrict the right to strike and roll back employment benefits, leading to clashes with police.
Securities Regulator Issues Cease-and-Desist for Crypto Offering
Argentina's Securities and Exchange Commission (CNV) rules that the virtual coin ARGt constitutes a security and its public offering was irregular, issuing a cease-and-desist order.
Argentina Finalizes Withdrawal from WHO
Argentina officially withdraws from the World Health Organization (WHO), a decision initiated by President Milei's administration a year prior, citing sovereignty and policy differences.
Nationwide Aviation Strike Begins
A 7-day nationwide aviation strike by ATE union workers begins, affecting 27 airports and paralyzing air travel in Argentina due to salary disputes with the government.
🔍Deep Dive Analysis
Argentina has experienced a period of profound change and turbulence since the election of Javier Milei as president on December 10, 2023. Milei, a self-described anarcho-capitalist, swept to power on a platform promising radical economic 'shock therapy' to address decades of chronic inflation, fiscal deficits, and economic stagnation. His administration immediately embarked on an ambitious program of deregulation, slashing public sector jobs, freezing public works and subsidies, and significantly reducing the number of government ministries.
The initial impact of these measures was a sharp increase in poverty, which rose above 50% as austerity hit vulnerable populations. However, the government's fiscal consolidation efforts quickly yielded results, with Argentina achieving a primary fiscal surplus of 1.8% of GDP by late 2024, the first in 14 years, and an overall fiscal surplus of 0.3% of GDP in 2024. Crucially, annual inflation, which had surpassed 200% in 2023 and peaked at 289% in April 2024, saw a dramatic decline, falling to approximately 30% by the end of 2025 and projected to reach 20% in 2026. Monthly inflation also dropped significantly from 25.5% in December 2023 to a low of 2.7% by the end of 2025.
Despite the economic improvements, Milei's reforms have been met with persistent and often violent social unrest. Throughout 2024, 2025, and into early 2026, large-scale protests and general strikes have occurred across the country, organized by labor unions and civil society organizations opposing the government's austerity measures and proposed labor reforms. These reforms aim to weaken trade unions, reduce severance pay, extend the maximum working day, and restrict the right to strike, leading to clashes with security forces who have used tear gas, rubber bullets, and water cannons against demonstrators. Concerns have also been raised by human rights organizations about the shrinking civic space and attempts to undermine constitutional checks on executive power, such as Milei's unsuccessful decree to appoint Supreme Court justices in early 2025.
Politically, Milei's La Libertad Avanza party gained more seats in the Chamber of Deputies and the Senate in the October 2025 midterm elections, strengthening his position but still leaving him without a congressional majority, necessitating coalition-building for further reforms. Internationally, Argentina has shifted its foreign policy, strengthening ties with the United States and Israel while rejecting membership in the BRICS bloc. As of March 2026, Argentina continues to face significant challenges, including substantial external debt repayments of nearly $20 billion in 2026 and the need to rebuild international reserves. The country also finalized its withdrawal from the World Health Organization on March 17, 2026, and is experiencing a nationwide aviation strike from March 18-24, 2026, highlighting ongoing domestic tensions.
What If...?
Explore alternate histories. What if Argentine Republic made different choices?