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Argentina in the Milei Era: After the Euphoria, a Time of Doubt for Luxury

By Eva Morletto23 juillet 2026

Javier Milei’s ascension to power has shaken up the Argentinian economy. For the luxury sector—long hampered by exchange controls and import restrictions—the first few months of the new administration were greeted with enthusiasm. Two and a half years later, the picture is more nuanced.

Patagonia is the region of Argentina expected to grow the fastest, with an average annual growth rate of 7.8% through 2031 (Shutterstock)

$2.8 Bn

The Argentine luxury market is expected to grow from approximately $2.1 billion today to $2.8 billion by 2034

$200 M

The amount Meliá Hotels International is investing in Argentina to accelerate its expansion, including two new luxury hotels in Patagonia

62.3%

Occupancy rate for 4- and 5-star hotels in Patagonia (the highest in Argentina)

For luxury brands, Argentina has long been a paradoxical market. The country has a tradition of high-end consumption and a wealthy elite loyal to international brands. Yet customs barriers and multiple exchange rates often made luxury goods more expensive in Buenos Aires than in Paris, Madrid, or Miami.

The election of Javier Milei marked a turning point.

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A Liberalization Long Awaited

Javier Milei, pictured above, has been president of Argentina since December 10, 2023. His arrival, with his pragmatism and unapologetically liberal policies, had initially won the approval of the elites; today, the situation is more nuanced (Shutterstock)

The devaluation of the Argentine peso, the gradual reduction of import barriers, and the stabilization of the foreign exchange market were seen as very positive signals by international companies.

According to several industry studies, the Argentine luxury market is currently worth approximately $2.1 billion, with projections for growth to $2.8 billion by 2034. While this growth remains modest on a global scale, it reflects the gradual reopening of a market that has long been challenging.

Unlike Brazil or Mexico, Argentina does not have a large upper-middle class capable of sustainably fueling growth in the luxury sector.

The market relies primarily on three customer segments: traditional high-net-worth individuals—often linked to agribusiness, large landholdings, finance, or real estate—the new elite associated with the technology sector, and, finally, an “aspirational” clientele drawn from the upper middle class.

While Milei’s rise to power—with his pragmatism and unapologetically liberal policies—initially won the approval of the elites, the situation today is more nuanced. It must be acknowledged that inflation, despite its dramatic slowdown, continues to erode purchasing power. Real incomes remain under pressure. As a result, sales of luxury goods are feeling the effects of this situation, especially among the middle classes.

Are the Elites Distancing Themselves From Javier Milei?

Buenos Aires, the country's main economic hub, is home to the vast majority of Argentina's investments and luxury offerings (Shutterstock)

The paradox of this market is that its wealthiest consumers often shop elsewhere.

Miami has long since become one of the main “capitals of Argentine luxury.” Madrid, Paris, and Milan also play a central role.

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