In an article entitled “Time for growth”published in Infobae, President Javier Milei exposed his gaze on the factors that he considers fundamental to achieve Argentine economic growth. According to the president, after months of adjustment and shock measures, the country would be ready to initiate a stage of sustained expansion. The proposal includes ten strategic axes based on concepts of classical economic theory, market freedom and deregulation, accompanied by a defense of the fiscal order and monetary stability.
Next, a review of the 10 keys that, according to Milei, will allow Argentina to grow:
1. Capital accumulation and respect for private property
For the president, growth depends on the accumulation of physical and human capital, something that is only possible if property rights are guaranteed. “Without respect for property, the investment does not take place,” he warned.
2. Savings as an investment source
Savings, whether internal or external, is key to finance investment. Milei said the current account deficit reflects the gap between internal savings and domestic investment.
3. Fiscal balance and macroeconomic order
The closure of the fiscal deficit eliminates the need to issue money, which according to Milei will allow “by mid -2026 inflation to be a problem of the past.” In addition, he assured that the debt/GDP ratio will not grow.
4. Fiscal adjustment via spending, without raising taxes
The president stressed that the 15% adjustment of GDP was achieved by lowering public spending, without increasing taxes. “We have even lowered them,” he said.
5. Low inflation and recovery signs
Milei celebrated the fall in the monthly variation rate of wholesale prices and assured that December 2024 showed an year -on -year rise of 6%.
6. Human capital as the basis of development
The president stressed that human capital explains 70% of economic growth, so his government created a ministry focused on childhood, health, education and employment.
7. Economic freedom as a engine of progress
Milei said that the freest countries have 12 times more per capita income and less poverty. “The average life in free countries is 25% longer,” he said.
8. Deregulation to enhance productivity
For the president, deregular allows to release increasing yields and accelerate economic expansion. He stressed that the Bases Law and structural reforms are “25 times larger than Menem.”
9. Demography and population growth
Milei considered that demography is key to development and called to review birth policies. “Abortion is an atrocity that affects demography,” he said.
10. Strategic sectors and rigid
The president projects growth in sectors such as energy, mining, field, nuclear and artificial intelligence. In addition, the incentive regime for large investments (Rigi) seeks to attract capital for these sectors.
Source: Ambito
