Southern Cone in April 2026: the most important developments in economy
In April 2026, the economy of the Southern Cone was dominated by Argentina and the question of inflation against growth under President Javier Milei. Inflation in Buenos Aires rose again to 3% in March, and national data released mid-month showed a one-year high; Milei criticised the figures, calling them disgusting, but said he would keep his orthodox economic policy. On 9 April he pleaded for patience as growth slowed and his approval ratings fell, and on 22 April data showed the sharpest monthly contraction in economic activity since 2023, the biggest slump under his government. At month end he reaffirmed his commitment to orthodoxy despite rising inflation. The World Bank meanwhile named Argentina Latin America's top growth exception, and spending cuts broke a 20-year trend of fiscal expansion.
Financing was the second theme. Argentina and the IMF reached a staff-level agreement on the second program review, unlocking about $1 billion, and the government sought billions more in multilateral-backed loans and bonds, including a $2 billion World Bank-backed loan. A possible $30 billion export surge was seen as a chance to rebuild foreign reserves.
Mining and energy formed the third theme. Argentine lawmakers approved a Milei-backed bill allowing mining in glaciers. POSCO expanded its lithium rights, First Quantum secured IFC financing for a copper project, and a judge cleared the way for a major BHP copper project after an earlier suspension, while La Rioja province blocked access to another copper and gold project. Shale pushed oil output to a record, with production on track for 1 million barrels a day in 2026. In Chile, investors turned toward lithium, the government introduced a bill to boost mining, cut taxes and speed up permits, and BHP expected nearly 2 million tonnes of copper from Escondida.
Other items included the sale of Nissan's Argentine operations, the bankruptcy filing of dairy company SanCor with $120 million in debt, new tolls on privatized roads, and the withdrawal of Argentine soymeal shipments in the EU over GMO breaches.
by WorldBrief & Maksim Micheliov | AI-generated summary
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