Milei He is recovering the Argentine economy, little by little, with great difficulty, due to the terrible legacy received, after eight decades of Peronism, the last ones particularly bad, but there are clear signs of this.
Thus, inflation in October reduced its growth to 2.7% monthly, the lowest figure in three years. Likewise, you have made an adjustment of 15 points of GDP on public spending without there being a huge economic contraction in the short term, although this is not without some suffering, which logically Milei always said would happen.
In the same way, by managing to curb inflation, always at enormous rates, the Central bank was able to lower interest rates, with seven descents, which led to the reference rate 35% out of 133% which he received.
Likewise, the policy of deregulation so that the private sector can compete And generate efficiency, is clear and ensures the legal security of the country. This means that, despite the strikes of groups interested in nothing changing, the economy shows signs of healing. This confidence means that the risk premium has fallen from 900 points base, or around 870 points, almost 1,000 less than the level received by Milei.
Likewise, dollar reserves increased, up to 12.4 billion, and presented a balanced budget, with a forecast of reducing the inflation growth and with an estimate of economic growth of a 5%.
All this makes the market think that it will be able to avoid the default in 2025which was intended to follow Peronist policies and which, with the help of the IMF, will be able to negotiate new recovery aid. Likewise, the presidency of asset in the United States will be of great help to Argentina.
Milei, although he does not have a parliamentary majority, gives hope in Argentina, with results in hand. Its liberalization measures restore confidence in economic agents, reflected by the aforementioned decline in the country’s risk premium. Javier Milei strives to promote a change in Argentina’s economic structure that the country needs to revive itself and return to the path of prosperity from which Peronism separated it eighty years ago. First, it must stabilize the Argentine economy so that, once this goal is achieved, the foundations on which to create good prosperity can be created. He himself almost concluded this first part by asserting that the economy is on the verge of being able to “fly”.
Its measures seek liberalize the economy, remove obstacles and obstacles so that the economy can prosper on its own, so that it is not a an artificially supported economy, a poor economy that lives on subsidies. Milei’s measures aim to create the conditions for Argentina takes off with private production capacity. It has enormous natural resources, it has work capacity and it only needs economic freedom to be able to develop, and this is what Milei means with his measures. Argentina, as I said in OKDIARIO, He’s found one last opportunity and he can’t let it pass. Milei’s measures constitute a real stabilization plan, which must continue to be implemented if we want to revive the Argentine economy. Spain developed its stabilization plan and joined the developed world. Argentina can do the same now.
Although it is early to obtain definitive results from its economic measures, the signs are good, largely thanks to the credibility given to them by economic agents and the market, which improves expectations since it is the first government for many decades trying to get rid of Peronist yoke which ruined the country, and largely thanks to the first results of adjustment of the budget balance, inflation, interest rates and the risk premium, which are positive and incontestable.
Despite the obstacles in Parliament, Milei said he would do everything legally possible to be able to carry out the reforms, because otherwise Argentina would lose what could be its last opportunity. I hope that he will succeed in implementing the reforms that will liberalize the Argentine economy and bring it out of its prostration. Of course, Milei has this intention and expresses himself clearly: he did it during his electoral campaign, he did it in Davos and he is still doing it today, which is something new, because there is no There aren’t many politicians in the world who tell citizens the reality of what needs to be done, however bitter it may be. The market, at the moment, values it positively Taking into account the risk premium and data on the improvement of the structural elements of the Argentine economy They respond appropriately. There is still much to do, but this is the way forward if Argentina is to regain the prosperity it lost more than eighty years ago. Milei continues, with his courage and professionalism, to rectify the situation Argentine economy.
