Southern Cone in July 2026: the most important developments in economy
In July 2026, the economy of the Southern Cone was dominated by Argentina under President Javier Milei. On July 26 Milei told farmers he would cut farm taxes and that growth in energy and mining would fund the reduction. Argentina's financial standing improved over the month. On July 3 it refinanced a $6 billion loan with international banks at a lower interest rate, and on July 5 it said it had secured funds for a $4.4 billion debt payment due July 9 and set out a debt plan through 2027, backed by $10 billion in reserves. On July 14 the Central Bank bought a record $532 million in a single day and the dollar fell to 1,495 pesos, and June inflation came in below expectations. On July 21 Moody's raised Argentina's rating to B3 from Caa1 and changed the outlook to positive. The Development Bank of Latin America and the Caribbean (CAF) approved a guarantee that lets Argentina borrow from private lenders. On July 28 IMF chief Kristalina Georgieva praised Milei's austerity measures as a model for the region, while a 2027 debt hurdle remains ahead.
The government also pursued restructuring. It awarded a privatization deal for key national routes to businessman Cristóbal López, dismantled the state nuclear energy development agency, ordered the construction of a new nuclear power plant, and promoted private insurance as part of its deregulation agenda. Several companies cut back: the footwear maker Dass closed its last Argentine plant and laid off 150 workers, and Waps entered bankruptcy protection. An Argentine economist was appointed the IMF's chief economist.
Trade shifted. Brazil lost its position as Argentina's top trading partner to China, and trade with Brazil came under strain amid a diplomatic conflict. The EU reopened its market to Argentine fresh poultry meat, and Argentine yerba mate gained commercial access to India.
In Chile, the Senate approved the president's economic reform package on July 16, and lithium exports topped $3.2 billion, the best figure since 2023. A deadly storm halted a key copper mine, whose restart was expected to take two to three weeks.
by WorldBrief & Maksim Micheliov | AI-generated summary
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