15.11.2026 12:11
While Argentine President Javier Milei's extraordinary outbursts are being debated, the country's public debt is projected to reach approximately 532 billion dollars in 2026. In a country struggling with high inflation and shrinking domestic consumption, economists warn that it has entered a recession, while Milei's economic policies are once again being debated.
As Argentine President Javier Milei's unconventional outbursts and economic policies continue to be debated, striking figures regarding the country's public debt have emerged. According to the International Monetary Fund's (IMF) 2026 estimates, Argentina's gross public debt reaches approximately 532 billion dollars, while the debt-to-gross domestic product (GDP) ratio was calculated at 69.3 percent. The Milei administration's goal of reviving the economy through harsh austerity policies continues to be debated due to high inflation and slowing growth.
PUBLIC DEBT STANDS AT 532 BILLION DOLLARS
According to the IMF's October 2026 World Economic Outlook data, Argentina's GDP is expected to be approximately 768.2 billion dollars this year. The ratio of general government debt to national income is estimated at 69.3 percent.
When these two figures are considered together, they indicate that the country's total public debt corresponds to approximately 532 billion dollars.
However, this figure is an estimate for the end of the year. Therefore, it cannot yet be said that 532 billion dollars is the finalized year-end debt amount or a historical record.
MAJOR JUMP IN DEBT DURING THE MILEI ERA
In the first year of Javier Milei, who took office in December 2023, Argentina's federal public debt in dollar terms increased significantly.
According to IMF data, gross federal debt, which was 367.9 billion dollars at the end of 2023, rose to 478.7 billion dollars at the end of 2024. Thus, the increase in one year reached approximately 110.8 billion dollars.
However, a different picture emerged in the debt-to-national income ratio. The debt/GDP ratio, which was at very high levels at the end of 2023, declined in the following period. Therefore, it would not be correct to say, based solely on the increase in the dollar-denominated debt amount, that the country's debt burden has become equally heavier.
INFLATION AND GROWTH ARE THE ECONOMY'S MAIN TEST
The Milei administration has placed reducing public spending and ensuring budget discipline at the center of its economic program. However, the effects of the implemented policies on people's purchasing power, employment and economic activity continue to be a subject of debate.
According to the IMF's October 2026 estimates, Argentina's economy is expected to grow by 2.1 percent this year. The average annual inflation estimate stands at 32.5 percent.
While these figures show that the country continues to fight high inflation, they do not support the claim that there was an economic contraction throughout 2026.
THE RESULTS OF ECONOMIC POLICIES ARE BEING DEBATED
Known for his harsh rhetoric, unconventional political style and radical economic reforms, Milei advocates reducing the state's role in the economy.
While the government considers cuts in public spending and fiscal discipline necessary for economic stability, the social costs of the implemented program are at the center of criticism.
The IMF's forecast of a budget surplus of 0.4 percent for 2026 indicates that the goal of recovery in public finances has yielded some results. On the other hand, high inflation and limited growth remain among the major problems facing the Argentine economy.
When evaluating the economic performance of the Milei administration, both the change in the dollar-denominated debt amount and the decline in the debt-to-national income ratio draw attention.