Argentina

Buenos Aires, Argentina: Diego Nacasio, 43, works full time as a salesman at a large hardware store in Florencio Varela, a city in the greater Buenos Aires area. He says he doesn’t need a calendar to know what day of the month it is. By the time his salary and that of his wife, who also works full time in a shop, run out, it is around the 15th.

From then on, they look for extra jobs, find things to sell, use their credit cards, and get small loans to pay for basics, including food, until the next paycheques arrive.

“I have never experienced anything like this,” Nacasio told Al Jazeera. “Over the past 25 years, we have worked hard, and our jobs allowed us to build a house from scratch, buy a car and give our 17-year-old son a decent life. Now, we have better jobs than we did then, and still cannot even afford food for the whole month.”

“Living on credit puts you in a very dangerous cycle. It’s very easy to fall behind with payments, and then it is a matter of chasing your own tail. Most people I know are in the same situation. We are living in a constant state of stress and anxiety, and it feels like there’s no way out.”

Nacasio’s story has become increasingly common in Argentina, where nearly half of the people say they are using savings, selling belongings or borrowing money from banks or relatives to cover basics, according to a report by Argentina Grande based on the latest official figures available. Another report, from Fundacion Pensar, found that 63 percent of Argentines have cut down on activities or services to make ends meet.

“The current situation in Argentina is extremely concerning. It is particularly worrying to see that even people who have one or several jobs are getting loans not to buy a house, a car or white goods [appliances], but to buy food,” Violeta Carrera Pereyra, sociologist and researcher at the Argentina Grande Institute and one of the authors of the report, told Al Jazeera.

A tale of two cities

Argentina’s President Javier Milei, who took office in December 2023, says his austerity economic plan, based on achieving fiscal balance while building up reserves of United States currency through drastic cuts to public spending, has revitalised the economy and lifted millions of people out of poverty. He is backed by the International Monetary Fund, which, despite Argentina’s record levels of foreign loans, projects an economic growth of four percent in 2026 and 2027.

But a closer look at the figures shows a different, more sombre, picture.

While economic activity in Argentina has increased overall, growth has been uneven. In November 2025, the most recent month for which data is available, sectors such as banking and agriculture saw growth, but manufacturing and commerce experienced sharp declines, with many factories and shops closing due to falling demand. Consumption, particularly of food, has been falling, with a 12.5 percent drop reported by independent food retailers.

Then there’s inflation, a key variable that in Argentina needs to be kept at bay in order to access essential foreign credit.

While Milei’s shock economic plan managed to significantly reduce inflation from record-high figures when he first took office in late 2023, experts say his administration has taken some controversial measures to keep it low. This includes forcing salaries to remain stagnant and under the rate of inflation, and opening the country up to cheaper imports. These policies have left many without money to spend and forced thousands of factories and small businesses to close.

Critics also say inflation figures are not representative of real price fluctuations. The tool used to measure inflation in Argentina, a sample basket of goods people consume, was developed in 2004 and does not reflect current consumption patterns, including the percentage that items like electricity and fuel – two areas that have seen price hikes considerably higher than inflation – represent in people’s real spending habits.

Carrera Pereyra says that figures also show that the rapid changes in Argentina’s economy have widened inequalities.

“On the one hand, we see that some sectors are able to consume more, so we see a rise in the sales of properties, cars, motorbikes, some as a result of the opening of imports,” she said. “But on the other hand, items like food and medicines are decreasing. So, some people can buy more things than before, while others are struggling to put food on the table.”

An obstacle course

Many Argentines who spoke with Al Jazeera said that making ends meet has become nothing short of an obstacle course. Juggling multiple demanding jobs, selling used items such as clothing, borrowing from relatives, seeking shark loans and bargain hunting have become a regular part of daily life.

“Shopping for food has become a job in itself,”  said Veronica Malfitano, 43, a teacher and trade unionist, whose salary was cut by a quarter when Milei slashed public spending. “I team up with relatives or people I work with, and we buy in bulk. I use my credit card or get small loans. This month, for the first time, I have only paid the credit card’s minimum, something I had never done before. It’s all very stressful. Everybody I know is in the same situation.”

Research confirms Malfitano is not alone. Nearly half of supermarket purchases in Argentina are paid with credit cards, a record, according to recent official data.

Both borrowing and default rates have increased. It is estimated that around 11 percent of personal loans are unpaid, the highest rate since the Central Bank of Argentina began keeping records in 2010, according to Central Bank data.

Griselda Quipildor, 49, who lives with her husband, two daughters and two grandchildren, says that even though several people in her family work, money usually runs out by the 18th of every month and they have to start taking loans.

“At the start of the month, we pay debts, the bills and then the money runs out and we have to start borrowing again. It’s an endless vicious circle, one that is very difficult to get away from. We borrow from people we know and people we don’t know. It wasn’t like this before.”

Lucia Cavallero, an analyst, economics expert, and member of Movida Ciudad, told Al Jazeera that even though Argentina’s economic problems are longstanding, their impact on people’s homes is worsening.

“Debt has long been a serious problem in Argentina, and it has now become a crisis,” she said. “The proliferation of informal lenders has created a dangerous situation, leaving many people with no other options.”

In response, a political party has proposed a bill that would help people in lower-income sectors unify their loans and apply for a long-term payment plan at lower rates.

Cavallero says there are some positive aspects to the initiative, but that it largely misses the central point.

“It is good to see the political class recognising that debts are a serious problem for people,” she said. “However, this approach follows the logic of borrowing to pay off debt. While it may provide temporary relief, deeper structural changes are needed.

“Just as banks are bailed out, we are calling for families to be supported. A more sustainable solution is for wages to keep pace with the cost of the basic basket, so that people do not have to go into debt just to afford food,” Cavallero told Al Jazeera.

Despite all the challenges he and his family face, Nacasio says many people like himself still count themselves lucky.

“At least we own our house,” he said. “If we didn’t and we had to pay rent, I don’t know what we would do. I just need things to change, for us and for everybody. Things cannot continue like this.”

BUENOS AIRES — Argentina and the United States said they reached an expansive trade deal Thursday, boosting President Javier Milei as he moves to open up the South American nation’s notoriously protectionist economy and reflecting the close alliance between the radical libertarian and President Trump.

Argentina’s foreign minister, Pablo Quirno, posted a selfie on social media showing him and several diplomats beaming after emerging from a meeting in Washington where he said they’d signed the pact.

“Congratulations to our team and thanks to the U.S. Trade Representative’s team for building this great agreement together,” Quirno wrote. The Office of the U.S. Trade Representative also confirmed the deal.

The countries announced a framework for the agreement in November, saying Argentina would ease restrictions on a range of American imports, including cattle, dairy products, medicines, chemicals, machinery, medical devices and vehicles. Those were key concessions for Argentina, where local industries long protected by steep tariffs have expressed concern about their ability to compete with American manufacturers.

The U.S., for its part, would remove reciprocal tariffs on imports of “certain unavailable natural resources” and ingredients for pharmaceutical goods from Argentina, according to the framework.

At the time, the White House reached similar frameworks with Ecuador, Guatemala and El Salvador — part of what it described as an effort to improve the ability of American firms to sell industrial and agricultural products in Latin American countries and bring down food prices for U.S. consumers.

Officials did not immediately offer details about the final version of the U.S.-Argentina deal signed Thursday.

The agreement marks the latest development in the close alliance between Trump and Milei, who has reshaped Argentine foreign policy to align with the U.S., earned Trump’s praise for stabilizing his nation’s crisis-prone economy and traveled to the U.S. more than a dozen times in the last two years. Milei is scheduled to appear at Trump’s Mar-a-Lago estate next week to speak at a gala.

Trump supported Milei’s fiscal program last year with a $20-billion credit line that succeeded in calming markets and boosting Milei’s prospects in a crucial midterm election in October. The U.S. Treasury also directly purchased U.S. dollar-denominated Argentine bonds that ratings agencies were classifying as “junk” at the time and snapped up the volatile local currency that Argentines were dumping in droves.

The extraordinary intervention drew backlash from across the U.S. political spectrum.

Trump’s MAGA base questioned the need to bail out a far-flung country that’s not only of little importance to the U.S. but also directly competes with its exports of corn, wheat, meat and oil.

Democratic lawmakers expressed outrage that Trump was staking taxpayer money on a political gift to an ideological soulmate.

That criticism has continued, with U.S. Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking Committee, on Thursday appealing to Treasury Secretary Scott Bessent to end the $20-billion lifeline.

In a letter, she wrote that even though the Treasury promised its credit line for Argentina “was for an acute, short-term, and urgent purpose, it appears … to have left open the possibility of continued use.”

Debre writes for the Associated Press. AP writer Josh Boak in Washington contributed to this report.

BUENO AIRES, Jan. 30 (UPI) — The Argentine government authorized private companies to import and sell liquefied natural gas — a move that removes the state from those operations and accelerates the privatization of Enarsa, the country’s public energy company.

The decision was formalized through a decree signed by President Javier Milei and published in the Official Gazette this week. The decree also extends through December 2027 a state of emergency in natural gas transportation and distribution, underscoring continued strain on the system.

Enarsa has historically handled production, transportation and marketing of oil, natural gas and electricity in Argentina. With the new policy, the government begins dismantling that role and shifting functions long overseen by the state to the private sector.

The decision addresses a long-standing structural problem. According to the Secretariat of Energy, Argentina lacks sufficient pipeline capacity to move all gas from producing areas to major urban centers.

That limitation becomes acute in winter. As heating demand rises, domestic supply falls short and the country must import liquefied natural gas by ship.

Until now, the state managed that process. Enarsa bought LNG on the international market at high prices and sold it domestically at well below cost, with the gap covered by taxpayer-funded subsidies.

“This change is part of the decision to move forward with privatizing Enarsa’s assets and activities and to remove the state from its role as an entrepreneur and intermediary in the energy market,” the Energy Secretariat said.

Officials said the state should focus on regulating the market, ensuring clear rules, promoting competition and guaranteeing supply rather than directly buying and selling gas.

Under the new framework, Enarsa will stop importing and marketing LNG, and private operators will take over under a competitive scheme.

The system eliminates the implicit subsidy that existed until now and transfers the entire operation to the private sector, subject to competition rules and state oversight.

To implement the plan, the government will sell access to the Escobar terminal on the outskirts of Buenos Aires. It is the country’s only operational facility where imported LNG is regasified for distribution.

The Secretariat of Energy will set the tender conditions. If no bids are received or the process fails, Enarsa may intervene temporarily to avoid supply disruptions.

Because only one terminal is operating, the government also said it will set a maximum gas price for the upcoming winter to prevent abuse of a dominant position.

Juan José Carbajales, a former undersecretary of hydrocarbons, told UPI that privatization basically means giving a private company the job of buying LNG shipments and then selling that gas inside Argentina.

He said the operation is purely commercial and does not include physical management of the Escobar terminal.

“The scheme will be based on requests the awardee receives from power generators and gas distributors, and sales will be capped by a maximum price set by the Energy Secretariat at least for the next two periods,” Carbajales said.

He said the decision reflects the government’s view that the function failed under state management — a stance rooted in broader distrust of public-sector economic activity, in this case Enarsa.

He said the position is ideological and supported by the so-called Bases Law, which prioritizes private initiative in the economy.

The former official added that large budget allocations to Enarsa did not prove a system failure, but rather a political decision by successive administrations to channel residential gas subsidies by buying fuel at international prices and selling it domestically at far lower levels.

He said the measure also aligns with reforms in the electricity market aimed at gradually returning to a system of free contracting between supply and demand.

Carbajales warned gas prices in Argentina could rise if international conditions push LNG costs higher.

“Although the government will cap that value for two years, uncertainty will remain about what happens once the ceiling is lifted,” he said.

The authorization for private companies to import natural gas is part of a broader privatization agenda promoted by Milei. Since taking office in December 2023, his administration has moved to sell or prepare for sale several state-owned companies.