Industry leaders urge Milei to boost production, call for assistance

Leading industrialists on Wednesday called on President Javier Milei’s administration to introduce measures to stimulate production and mitigate the effects of the opening of the economy.

A dramatic fall in inflation, which has dropped from triple-digit levels to around 30 percent annually since Milei took office nearly three years ago, is the government’s main economic achievement. It has also achieved fiscal balance, albeit at the cost of a sharp adjustment in spending on pensions, healthcare, education and infrastructure.

Industry has been one of the sectors hardest hit by Milei’s economic policies, with around 90,000 jobs lost in the sector since August 2023.

“Stability is fundamental for Argentina, but the economy cannot be measured solely by the evolution of inflation. We have to look at economic activity,” said Martín Rappallini, president of the Union Industrial Argentina (Argentine Industrial Union, UIA), at an event marking National Industry Day, which was not attended by either Milei or his ministers.

Milei has dismissed criticism from industrialists. In March, he said that “the jobs destroyed in one sector will be created in others under conditions that allow them to compete internationally.”

The La Libertad Avanza government has promoted major investments through tax cuts and financial incentives with its RIGI scheme, but these investments have been concentrated mainly in mining, a sector with a limited impact on demand for employment.

Argentina’s economy grew by 1.9 percent in the first half of the year, with mining, fishing and agriculture the most dynamic sectors. In contrast, manufacturing output fell by 2.2 percent over the same period.

Around 30,000 companies have closed since Milei took office, according to industry data.

Against this backdrop, industrialists called on the government to cut taxes, reduce energy costs, invest in infrastructure and improve access to credit to enable domestic producers to compete with imports.

“The industrial sector is asking for a bridge between the economy we are leaving behind and the competitive economy we want to build,” said Rappallini in his speech

Industry leaders also called for government action to tackle the high level of debt among industrial companies, noting that non-performing loans in the manufacturing sector had increased fivefold over 18 months, from 0.7 percent to 3.8 percent as of June 2026.

Rappallini also called for “respect” from Milei and government, alluding, without naming him, to the frequent “disparagement” and “attacks” by the President against members of the sector who have critiqued his economic plan.

“We can have differences, and even debate what policies Argentina needs, but respect has to be a fundamental part of our democratic coexistence,” said the UIA president.

According to UIA data, the sector accounts for almost 18 percent of Argentina’s gross domestic product, 20 percent of formal employment and 30 percent of tax revenue.

– TIMES/AFP