According to the Universidad Torcuato Di Tella’s monthly survey, confidence in the government fell by 5.4% mom to 48.4% in March, marking the fourth consecutive monthly decline. As a result, confidence in the government is 15.4% below the peak when the government took office in December 2023. Importantly, the survey was conducted between March 5 and March 14, after the cryptocurrency scandal (February 14).
Most components fell in March: The “ability to solve the country’s problems” fell by 5.5% MoM, the “honesty of public officials” contracted by 5.4% MoM, “general evaluation of the government” dropped by 12.2% MoM, while the rating for “efficiency in the management of public expenditure‘ decreased by 11.1% MoM. On the other hand, the “concern for the general interest” rose by 11.1% mom. Despite the decline in several sub-indices, even more respondents expect an improvement in the economic outlook.
Our take: Confidence in Milei’s government remains high, despite the impact of the cryptocurrency scandal and the ongoing macro adjustment. Maintaining a high approval is key for the administration, with midterm elections looming towards the end of October. The next government confidence report will be published on April 28.