IMF chief praises Argentina‍‍`s economic progress under Milei

International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Monday praised Argentina's economic improvements under President Javier Milei, saying the country is in a 'much sounder' position than when he took office in 2023. Speaking alongside Economy Minister Luis Caputo during a visit to Buenos Aires, Georgieva credited the government's economic policies and the sacrifices made by the Argentine people for the country's improved outlook. 'What we have today, by all indicators, is a much sounder picture,' she said, adding that Argentina's stronger economic position reflects 'the hard work of the government' and 'the sacrifice of the Argentine people.' Milei, who came to power promising sweeping economic reforms, has pursued aggressive spending cuts and austerity measures aimed at curbing inflation and stabilising the economy. While inflation has eased in recent months, the policies have triggered frequent protests over their social impact. Caputo said Georgieva held a positive meeting with Milei and congratulated the government on its economic management. According to the minister, she also met with members of the president's cabinet during her two-day visit. Georgieva is also scheduled to meet Central Bank Governor Santiago Bausili, business leaders and academics before visiting the Vaca Muerta oil and gas development, one of Argentina's key export-producing regions. The visit comes as Argentina continues implementing a four-year, $20 billion Extended Fund Facility agreed with the IMF in 2025. The Fund approved a further $1 billion disbursement under the programme in May. Despite signs of improvement, the country's economy continues to face significant challenges. Annual inflation remains high at 33.5%, economic growth has reached just 0.2% year-on-year, and consumer spending remains weak. Mortgage defaults have also climbed sharply, reaching 12.8% over the past year, the highest level in two decades. IMF spokesperson Julie Kozack said Georgieva's visit provided an opportunity to review progress under the current economic programme with the Argentine authorities. Meanwhile, protesters gathered in Buenos Aires to oppose both the IMF and Argentina's foreign debt obligations during Georgieva's visit. Demonstrators carried banners rejecting debt repayments and calling for the IMF to leave the country. After concluding her visit to Argentina, Georgieva is expected to travel to Uruguay for talks with President Yamandu Orsi.