Doha: Qatar National Bank (QNB) expects Argentina's economy to face multiple challenges in the coming period, despite projected growth rates of 3.5 percent in both 2026 and 2027. According to Qatar News Agency, QNB highlighted Argentine President Javier Milei's unexpected mid-term electoral victory as a significant political development that may influence the country's economic trajectory. In its Weekly Economic Commentary, QNB described Milei as a libertarian outsider who has prioritized austerity, deregulation, and a rollback of state intervention. This marks a substantial departure from Argentina's traditional Peronist policies. Since taking office in December 2023, Milei has begun reversing the economic trends of his predecessor, with inflation dropping from nearly 300 percent per year to around 30 percent by the end of 2025. Despite these improvements, the economic rebound has stagnated, and political tensions have arisen, especially after the Peronists won in Buenos Aires. The financial markets reac ted with currency depreciation and rising bond spreads. Amid these challenges, Milei secured a USD 20 billion currency-swap package with support from US President Donald Trump to stabilize the peso. QNB outlined that Milei's administration will face resistance as it focuses on structural reforms, particularly in labor and tax sectors. With Argentina's labor market characterized by high costs and complex dismissal rules, productivity has suffered. The tax system, with 155 levies, presents further challenges. The bank also emphasized the need for increased investment to reach the levels of high-growth emerging economies. Moreover, QNB pointed out the necessity for Argentina to regain investor confidence and improve macroeconomic stability. The peso's depreciation and high risk premiums on sovereign bonds indicate ongoing economic vulnerabilities. Consistent policies will be essential to rebuild monetary credibility and sustain fiscal discipline. QNB concluded that while growth is projected to improve, Presid ent Milei's administration must lay the foundations for sustained long-term growth to overcome the current economic hurdles.