Javier Milei’s spokesperson in his first press conference announced that the brand new head of the portfolio will announce the measures. What is the expectation?
Manuel Adorni, The presidential spokesperson for the Government of Javier Milei confirmed that Luis “Toto” Caputo, The new Minister of Economy will announce the first economic announcements on Tuesday.
“Tomorrow the economic announcements will be given by Caputo“he stated in his first press conference.
“The economic challenges are enormous (…) Argentina lives in a state of emergency, the issue of inflation is the central issue that worries people. The economic definitions will be in charge of Caputo and we will see if he understands that it is actually include the tax issue in this first package of measures or not,” he added when asked by a journalist.
Javier Milei: the economic measures that are expected
The initial economic measures will be presented with four central axes: a strict fiscal adjustment to move quickly towards zero deficit (see separate), a devaluation jump of the official exchange rate (which some versions anticipate with a floor of 50%), a release of key prices (such as rates, fuel and those subject to Fair Prices) and the eelimination of the remunerated liabilities of the Central Bank.
Immediately, it was confirmed that, in the absence of a new budget for 2024, the incoming president will decide to extend the one corresponding to the current year, that is, he will have the possibility of liquidating expenses by not adjusting the nominal items. According to the Latin Focus Consensus forecast, inflation next year would be 222%.
Ministry of Economy door
Ignacio Petunchi
“We must be attentive to how the market reads each of the measures that are taken and this trust that they have to generate,” said economist Elena Alonso in dialogue with Ambit.
The thick lines were drawn by Milei on the steps of Congress, who assured that “there is no alternative to adjustment and shock,” after stating that he receives ““the worst inheritance in history”. The warning to justify it was the projection of inflation that would travel between 20% and 40% for the coming months. Paradoxically, the president said that the adjustment will fall on “the State and not on the private sector”, but a few paragraphs later he admitted that “it will have a negative impact on the level of activity, employment, real wages, the number of poor and indigent.”
Source: Ambito
