Large -scale budget and deregulation savings, initiated by Millei, quickly established the Argentina economy. According to IMF forecasts, by 2025 it will grow 5.5% after last year’s last year.
The monthly inflation rate in Argentina fell below 2% – for the first time in five years. This is a significant success for President Havier Miley, who is fighting the chronic rising prices in the country. This has been reported by the Financial Times.
In May, consumer prices rose 1.5% compared to April, the National Statistical Agency said Thursday. In April, growth reached 2.8%, while in December 2023 – 25.5%, when Miley was just occupied. At the same time, annual inflation remains one of the highest in the world – 43.5%.
This result strengthens the mile position on the eve of the intermediate elections in October. Its main slogan is the stability of prices for voters who have suffered from financial immorality for many years. The decline in inflation is the president’s success after he cancel hard currency regulation – one of the key elements of his anti -crisis policy.
In April, as part of an IMF agreement, $ 20 billion, Miles refused a fixed exchange rate, clearly strengthening the sand in real terms. This helped to prevent rising prices, but at the same time the central bank was not allowed to accumulate foreign exchange reserves. From April 14, Peso has been free to swim – and it has caused a fear of a new inflation.
To attract more money to the market, authorities temporarily provided tax benefits to agricultural exporters. It supported the Peso course, though analysts warned: During the election campaign it may weaken again.
Large -scale budget and deregulation savings, initiated by Miley, quickly established Argentina’s economy. According to IMF forecasts, by 2025 it will grow 5.5% after last year’s last year.
However, economists have warned: in recent months, growth has stopped – the performance and volume of investment will remain low. Investors are also concerned about the policy of the authorities related to foreign exchange reserves.
The president of slowness along with the replenishment of Central Bank reserves required for the delivery of external debt. The IMF even postponed the deadline to reach the target growth of $ 4.5 billion reserves from June 13 to July.
Miley refused to redeem the dollar by the release of the peso, as the previous governments did, so as not to increase the supply of money and not provoke inflation.
At the same time, authorities continue to use reserves for interfering with the peso market futures, despite the terms of the IMF agreement, which only allows such actions in special cases.
On Monday, the government announced a number of steps to add reserves: in particular, about a $ 2 billion reposit and dollar ransom plans at the expense of the excess budget.
Last month, it was also possible to attract $ 1 billion during bonds to international investors.
Earlier, the media wrote that investors were no longer in the fact that Argentina was inevitably approaching the default, as the country’s president Javier Miley won bond markets in his plans for reforming South America’s second largest economy.
Argentine president removed the tax service
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.