Argentina: Milei's Reserves Rise but Economy Nears Technical Recession

Argentina's central bank has boosted international reserves and improved the trade balance while disinflation advances, yet consumption remains weak and activity stagnant, raising the risk of a technical recession. The paradox highlights the tension between external stabilization and domestic demand collapse under Milei's adjustment program. Economists are split on whether the government can sustain the fiscal anchor without triggering a deeper downturn.

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