Argentina Sputters Toward Recession as Milei Takes Reins (1)

Argentina’s economy stalled after an August devaluation of the official peso rate, illustrating the challenge President-elect Javier Milei will inherit when he takes office next month.

Economic activity was flat in September from a month earlier, according to government data published Wednesday, stronger than the 0.5% drop forecast by economists. From a year earlier, the gross domestic product proxy fell 0.7%, in line with expectations.

Milei’s upset victory in August’s presidential primary election prompted the incumbent Peronist government to devalue the official currency 18% and raise the key interest rate 21 percentage points. The devaluation hit prices hard that ...