Argentine president-elect Javier Milei greets supporters after winning Argentina’s runoff presidential election, in Buenos Aires, Argentina November 19, 2023. REUTERS/Cristina Sille/ File Photo Acquire Licensing Rights
BUENOS AIRES, Nov 20 (Reuters) – Argentina’s libertarian President-elect Javier Milei has won a closely fought election. Now comes the hard part: dealing with economic crises.
Inflation is at 143%, net reserves of foreign currency are deep in the red, savers are ditching the peso, and a recession is looming – if not already here. Four in 10 Argentines live in poverty and a sharp peso devaluation is likely.
Milei, who is pledging economic shock therapy such as shutting the central bank and dollarization, won a second-round runoff vote on Sunday with some 56% to rival Sergio Massa’s 44%.
Milei now faces the huge challenge of turning around the economy once he takes office on Dec. 10. Failure could lead to the already embattled country suffering a tenth sovereign debt default, poverty climbing and possible social unrest.
“It is an economy that is in intensive care,” said Miguel Kiguel, a former undersecretary of finance at the Economy Ministry in the 1990s.
INFLATION
Read the full article here