Argentina Loses 30,000 Companies As Milei’s Economic Reforms Reshape Business Landscape

Argentina has recorded a net loss of about 30,000 companies since President Javier Milei took office, particularly in retail, transport, real estate and industry. More than 400,000 formal company jobs have also disappeared, with some workers moving into self-employment or informal work. Businesses blame weak consumer spending and rising operating costs, while Milei describes the closures as “creative destruction” as newer sectors such as mining, hydrocarbons and administrative services expand. However, official data indicates that the emerging growth has not yet fully replaced the businesses and formal jobs lost.

THOUSANDS OF BUSINESSES DISAPPEAR UNDER MILEI

Argentina has recorded a net loss of around 30,000 companies since President Javier Milei took office, with retail, transport, real estate and manufacturing among the sectors most affected.
The decline has occurred as Milei's government pursues sweeping economic reforms aimed at reducing government spending, deregulating the economy and encouraging private investment.
Businesses affected by the changes have pointed to weaker consumer demand and sharply higher operating costs as major reasons for closures.
Electricity, gas, water and transport costs have risen significantly as the government has reduced subsidies and moved towards prices that more closely reflect market costs.
MORE THAN 400,000 FORMAL JOBS LOST
The contraction in the number of registered companies has also affected formal employment.
More than 400,000 workers have reportedly left formal employment with companies during the period, with some moving into self-employment or informal work.
For many workers, the shift has meant losing the protections associated with formal employment, including registered wages, social security contributions and other workplace benefits.
The figures have therefore raised questions about whether the economic restructuring is creating enough new formal employment to replace the jobs disappearing from traditional businesses.

MILEI CALLS IT “CREATIVE DESTRUCTION”

Milei has defended the economic changes as part of what he describes as “creative destruction”.
The term refers to an economic process in which older or less competitive businesses disappear while new companies and industries emerge to take their place.
The government argues that Argentina is undergoing a structural transformation rather than simply experiencing economic decline.
New activity has been developing particularly in administrative services, hydrocarbons and mining, sectors that have attracted investment as Argentina seeks to expand energy production and exploit its mineral resources.
The International Monetary Fund has also noted stronger activity in sectors including oil, gas, mining and agriculture, while urging Argentina to create more formal jobs and strengthen domestic consumption.
NEW GROWTH HAS NOT YET REPLACED LOST BUSINESSES
However, official economic data indicate that the emerging growth has so far not fully offset the businesses and formal jobs that have disappeared.
Argentina's economy grew by 2.3% year-on-year in the first quarter of 2026, according to the country's statistics agency, INDEC. Growth was driven partly by exports and sectors including agriculture, fishing, mining and financial intermediation.
But the latest figures also show weaknesses in domestic demand.
INDEC reported that shopping-centre sales fell by 4.9% year-on-year in June 2026, while sales for the first half of the year were down 2.7%.
Industrial activity has also remained under pressure. Capacity utilisation in manufacturing stood at 58.2% in July, slightly below the 58.4% recorded a year earlier.
SMALLER BUSINESSES FACE PRESSURE
Retailers and other businesses that depend heavily on domestic consumers have been particularly exposed to the adjustment.
When households have less money available for everyday purchases, businesses often respond by reducing staff, cutting operating hours or closing altogether.
Higher utility and transport costs can add another burden, especially for small and medium-sized companies that have less financial capacity to absorb rising expenses.
The departure of major retailers has also illustrated the difficult environment. French retail giant Carrefour, which had more than 600 stores and about 17,000 employees in Argentina, announced plans to sell its operations in 2025, with profitability and weak consumer demand cited among the concerns.

GOVERNMENT POINTS TO A CHANGING ECONOMY

Milei's administration argues that the economy is being reorganised around more productive and competitive sectors.
Energy has become a major focus, particularly development around the Vaca Muerta oil and gas formation, while mining has also attracted increased attention and investment.
The government says these sectors can generate exports, attract foreign capital and create higher-productivity employment.
The IMF has similarly highlighted stronger activity in oil, gas, mining and agriculture, while stressing that the next challenge is to translate macroeconomic improvements into more formal employment and stronger consumption.

THE COST OF ECONOMIC ADJUSTMENT

Milei inherited an economy suffering from high inflation, fiscal deficits and long-standing economic distortions.
His administration has responded with a sharp fiscal adjustment and a programme designed to reduce the role of the state in the economy.
Inflation has subsequently fallen substantially from its earlier levels, while Argentina has maintained fiscal and financial improvements that the IMF has praised.
But the adjustment has also imposed costs on households and businesses.
Lower consumption, higher regulated prices and changes in labour and business regulations have created a difficult transition for companies whose survival depends on domestic demand.

ARGENTINA’S ECONOMIC TRANSFORMATION CONTINUES

Argentina is therefore experiencing two economic trends at the same time.
On one side, sectors such as energy, mining and agriculture are expanding and attracting investment. On the other, thousands of businesses have disappeared and hundreds of thousands of formal jobs have been lost.
The key question for Milei's economic programme is whether the new sectors can eventually generate enough investment, businesses and formal employment to replace what has been lost during the adjustment.
For workers and small businesses, however, that transformation is being experienced not as an abstract economic theory but through closed shops, reduced incomes and the search for new ways to earn a living.