1. Milei delivered his speech at the United Nations General Assembly
As part of the 81st session of the United Nations General Assembly in New York, President Javier Milei led a busy official agenda in the United States. During his address to the multilateral forum, the president delivered a scathing speech against the host body.The most politically charged part of the speech focused on the issue of the Malvinas Islands, a dispute that Milei explicitly elevated to the status of a “national cause.” He maintained that the archipelago is “illegally occupied by the United Kingdom” and sought to shift the debate from a strictly bilateral level to demand that the UN ensure compliance with its own resolutions. He denounced the progress of the offshore oil project in the North Malvinas Basin under British licenses that Argentina considers illegitimate and warned that Argentina “will take action on the matter” through “peaceful and effective defense.” As the main new topic, the president introduced the debate on Artificial Intelligence, rejecting the need for state or multilateral regulation, and promised tax incentives, deregulation, and legal certainty to attract companies in the sector. He also reaffirmed his geopolitical alignment with the United States and Israel, which he described as the only liberal democracy in the Middle East, and condemned the Russian invasion of Ukraine. Meanwhile, the president’s agenda in New York included economic and diplomatic events, notably a speech to investors at The Economic Club of New York, a spiritual visit to the Ohel in Queens, and a bilateral meeting with Israeli Prime Minister Benjamin Netanyahu.
2. The IMF’s third review is underway in Buenos Aires as the economic team works to secure international financing
As the third review of the agreement with the International Monetary Fund (IMF) gets underway, Argentina is facing a decisive week for the consolidation of its economic program. The technical mission led by Joyce Wong began its assessments in Buenos Aires to review compliance with annual targets. The review focuses primarily on the primary fiscal surplus path, set at between 1.4% and 1.5% of GDP, and on the Central Bank’s ability to maintain net reserves; the Central Bank exceeded its foreign exchange purchase target by acquiring more than USD 14.2 billion. At the same time, the audit coincides with the establishment of a demanding schedule of financial maturities. The government must immediately make an $803 million payment to the IMF, to which additional obligations will be added in November and December. In this regard, the technical and Executive Board approval of Kristalina Georgieva’s proposal is key to unlocking a disbursement of between $869 million and $900 million, intended to provide relief to public finances and cover year-end obligations. Meanwhile, the local negotiations began without Economy Minister Luis Caputo, who delegated the initial talks to his technical team so he could accompany President Javier Milei to New York. Along the review in Buenos Aires, Caputo held meetings on Wall Street with bankers from firms such as J.P. Morgan with the aim of attracting investment and securing financial backing for the 2027 maturities. In this way, the Ministry of Finance seeks to send signals of predictability that will strengthen the capital markets and ensure economic stability.
3. Poverty rose by 4.1% and economic activity fell by 2.9%, according to INDEC
With data that shows a recession, the National Institute of Statistics and Censuses (INDEC) announced that during the first half of 2026, poverty rose by 4.1% compared to the previous year and stood at 32.3% of the population, affecting 15.5 million people. The percentage of households living below the poverty line reached 24.4%, and within this group, 5.6% of households live below the extreme poverty line, accounting for 7.5% of the population, approximately 3.6 million people. Compared to the second half of 2025, the poverty rate rose by 3.4 and 4.1 percentage points for households and individuals, respectively, while the extreme poverty rate increased by 0.8 percentage points for households and 1.2 percentage points for individuals. Likewise, INDEC also reported that the monthly economic activity estimator (EMAE) recorded a 1.4% year-over-year decline in July and a 2.9% decline from the previous month on a seasonally adjusted basis. Compared with the same month in 2025, eight economic sectors recorded year-over-year declines, most notably Wholesale, Retail Trade, and Repairs (-5.1% y-o-y). This sector, along with Manufacturing (-4.6% year-over-year), contributed a 1.3 percentage point decline to the year-over-year change in the EMAE. Other sectors of the economy also posted declines, such as Construction (-3.3%) and Transportation and Communications (-1.5%).
Perfil: La pobreza alcanza a más de 15 millones de personas en una economía al borde de la recesión técnica
4. Wages rose slightly faster than inflation, but sales fell again
The National Institute of Statistics and Censuses (INDEC) reported that the wage index rose 2.8% month-over-month in July, meaning the increase slightly exceeded that month’s inflation rate, which stood at 2.1%. It also noted that the year-over-year increase was 36.2%. In its report, the Institute stated that wages in the formal sector rose 2.5% month-over-month in July, while the year-over-year increase was 30.1%. It also reported that wages in the formal private sector grew 2.3% compared to June and 29.7% year-over-year. Meanwhile, in the unregistered private sector, wages rose 3.9% month-over-month in July and 59.9% year-over-year, while public sector wages recorded a monthly increase of 3%, with a year-over-year rise of 31%. However, INDEC also reported that supermarket sales fell 0.7% in July compared to the previous month, while wholesale sales rose 1.2% month-over-month. For supermarkets, the Total Sales Index at constant prices showed a 2.1% decline compared to the same month in 2025, while the January–July 2026 cumulative figure shows a 2.7% decline compared to the same period in 2025. For wholesalers, the Total Sales Index at constant prices showed a 1.1% decline compared to the same month in 2025, while the January–July 2026 cumulative total shows a 2.7% decline compared to the same period in 2025.
Cronista: Salarios: el índice de julio marcó una suba del 2,8% mensual y acumula un 21,8% en el año
5. In the Senate, the ruling party secured the votes needed for the Cold Zones bill and for the Central Bank of Argentina (BCRA) reform, which will now return to the Chamber of Deputies
On a successful day for the national government, the ruling party secured a two-pronged strategic victory in the Senate. First, it succeeded in passing into law the cut to gas rate subsidies for the so-called “Cold Zones.” At the same time, it managed to pass the reform of the Central Bank’s Charter, albeit with amendments that require the text to be sent back to the Chamber of Deputies. The session followed an agreement between La Libertad Avanza, the ruling-party bloc led by Patricia Bullrich, and various allied blocs, which allowed the agenda to be set. Excluded from the agenda were the Carbon Market bill, after negotiations with allies stalled, as well as the extension of the Pediatric Emergency, which inclusion was rejected. Regarding the Central Bank’s Charter, the bill must return to the Chamber of Deputies because amendments were made to the mechanism for appointing and removing its officials; according to the new text, these officials must be approved by the Senate by an absolute majority of its members. As for Cold Zones, the situation unfolded as a vote-by-vote negotiation that kept the outcome in suspense until the final minutes, and ended with a failed attempt by the Peronists to adjourn the session due to lack of quorum, after which the bill was voted on and definitively approved.