Javier Milei was sworn in as Argentina’s new president on Sunday, with a promise of radical change for the nation’s troubled economic landscape.
With inflation soaring more than 140%, and amidst a backdrop of relentless economic and political turmoil, Milei’s inaugural address was nothing short of disruptive, signaling a deep rupture with the immediate and historical precedents.
Acknowledging the hyperinflationary crisis he inherited, Milei painted a grim picture, projecting potential inflation rates reaching a staggering 15,000%, as local news outlet La Nacion revealed.
Despite enduring 12 years of stagflation, the ultra-libertarian president offered a glimmer of hope, assuring the public the catastrophe would only persist for a few more months due to his stringent fiscal policies.
“There is light at the end of the tunnel,” he enthused, emphasizing that this time the focus would be on cutting government spending rather than increasing revenues.
Manuel Adorni, the presidential spokesperson, revealed new Finance Minister Luis Andrés Caputo would soon announce economic measures, including a significant reduction in fiscal spending. Moreover, Milei has urgently ordered the removal of privileges, indicating a commitment to tightening the nation’s belt.
“I prefer to tell you an uncomfortable truth rather than a comfortable lie,” Milei boldly declared in his first speech.
President Milei swiftly unveiled his cabinet on social media, declaring, “¡Hay equipo!” (We have a team) and championing “Long live to freedom.”
HAY EQUIPO…!!!VIVA LA LIBERTAD CARAJO pic.twitter.com/sjHptgj3Tp
— Javier Milei (@JMilei) December 11, 2023
What Lies Ahead For Argentine Stocks?
The strong presence of U.S. officials at Milei’s inauguration, including key members of President Joe Biden‘s economic team, suggests a willingness from Washington to forge a positive relationship with the Argentine president, despite Milei’s well-known affinity for Donald Trump.
Built upon improved Buenos Aires-Washington relations and rising hopes on Argentina’s increased economic openness, Argentine stocks, as tracked by the Global X MSCI Argentina ETF (NYSE:ARGT), have surged by 20% since Milei’s victory in the presidential election runoff on Nov. 18, firmly entering bull market territory.
Among the…
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