Looking ahead to 2026, Carlos Menem’s former Economy Minister Domingo Cavallo released his final report of the year, proposing a series of reforms and changes that Javier Milei’s government should implement to achieve “vigorous and sustainable growth in Argentina’s economy.”
The fact is that while the economist believes that there are arguments “that 2026 will be a year of economic growth,” he calls on the government “not to rest on its laurels.”
Cavallo’s warning resonated widely in the political and financial worlds. In an extensive analysis published on his personal blog, he detailed what priority reforms Argentina needs.
The economist made it clear that fiscal adjustments and incentives for large investments were a relevant basis. However, he warned strongly: the recovery process requires the implementation of a much broader agenda and adherence to a precise sequence of structural changes.
Cavallo held nothing back. He stated that “the start of vigorous and sustainable growth in the Argentine economy is possible in 2026,” but clarified that this scenario depends on decisions that still need to be made. The deadline is getting shorter and the pressure on outstanding definitions is growing.
As he explained, the tax adjustment achieved in record time and the validity of the tax incentive system for large investments in sectors such as energy, mining and advanced technologies provided arguments for expecting an improvement in activity. But here came the shock: these successes alone are not enough.
The former minister stressed that “the government should not rest on its laurels”. The phrase is a warning to those who have celebrated official progress without paying attention to the path still to be taken.
Cavallo pointed out that it is necessary to advance several reforms in order to complete the reactivation of the sectors linked to the internal market and to ensure sustainable growth in the long term. In his opinion, the sequence of these measures is crucial.
The economist made it clear that 2026 and 2027 would be crucial years. These periods are intended to consolidate citizens’ support for the ideas of economic freedom and modernization that President Javier Milei has promoted since the 2023 election campaign.
As a first step, Cavallo highlighted the approval of the 2026 budget by Congress. He noted that this decision allowed progress in consolidating what he called “the great achievement of the last two years”: the strong adjustment of public spending and the elimination of the budget deficit.
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