A strict fiscal adjustment, a devaluation jump in the official exchange rate and a release of key prices are expected to be announced this Tuesday.
The brand new Minister of Economy of the Nation, Luis Caputo, He entered Casa Rosada this afternoon around 3 p.m., along with the Secretary of Finance, Pablo Quirnoto meet with the president Javier Milei, with a view to finalizing the first economic measures of the administration that will be announced this Tuesday.
An hour later, without making statements, both officials retired to the Treasury Palace. It turned out that in La Rosada they met with officials from CAF (former Andean Development Corporation), the development bank of Latin America and the Caribbean.
Previously, the head of the Treasury Palace had met with his team at the Economy headquarters, at a time when the details of the measures that are coming in the first section of the Milei administration and that are expected to be high are being defined. impact.
“Tomorrow the economic announcements will be given by Caputo“, stated Manuel Adorni, the new presidential spokesperson, in his first press conference, who could not confirm the time of the conference that the minister will hold tomorrow.
“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.
The economic measures expected
The initial economic measures will be presented with four central axes: a strict fiscal adjustment to move quickly towards zero deficit, 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%.
Source: Ambito
