Buenos Aires Herald · September 28, 2026

Milei Denies a Recession, While J.P. Morgan Forecasts a Contraction in the Third Quarter

In an interview with LN+, President Javier Milei denied that Argentina is entering a recession, despite recent economic data showing a sharp slowdown. He questioned the reliability of the seasonally adjusted figures and accused critical economists of acting in bad faith. “I can’t believe the intellectual dishonesty of economists,” he said, arguing that economic activity is merely expanding at a slower pace, not declining. He also downplayed the rise in unemployment to 7.9% and the surge in the country’s credit risk above 600 points, asserting that public financing is guaranteed through the end of 2027 and that the market does not assign a probability of default to the country.

The president’s statements contrast with J.P. Morgan’s assessment, which lowered its growth forecast for 2026 from 2.7% to 1.5% after it was revealed that economic activity fell 2.9% in July compared to the previous month— the worst monthly decline since the April 2020 lockdown. The U.S. bank now projects an annualized contraction of 4% for the third quarter, which could mark two consecutive quarters of decline—the standard definition of a technical recession.

Via Buenos Aires Herald

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