Javier Miley promised sweeping changes to correct decades of ineffective policies. However, economists warn about the possibility of another round of hyperinflation.
In Argentina, on Sunday, November 19, presidential elections were held, in which, according to preliminary data, the libertarian Javier Miley won, Bloomberg reports.
It is noted that according to the results of counting 93% of the ballots after the second round of elections, Miley received 56% of the votes against 44%, which the Argentines cast for the Minister of Economy Sergio Massa from on the left side of the Peronist coalition.
Massa conceded defeat in a speech to fans in Buenos Aires.
“The Argentines have chosen a different path,” he said.
In turn, Miley promised radical changes aimed at correcting decades of ineffective policies. The strategy has found support among a population suffering from an economic downturn, prolonged currency devaluation and one of the fastest rates of inflation in the world.
As such, Miley has a mandate to implement campaign promises, including abandoning the peso in favor of the US dollar and closing the central bank, as well as radical cuts in government spending in an attempt to pull the crisis out of the country. country of 46 million. .
The publication notes that “Miley’s shock therapy puts Argentina on a path of deep uncertainty, and some economists warn that the dollarization of the $622 billion economy at a time when international reserves are run out could send the South American country into another phase of hyperinflation.”
Meanwhile, International Monetary Fund officials called on the next government to quickly reboot the economy, stressing that there is no time for “casual policy.”
“Miley gave the clearest, but most dangerous, answer to the daily reality of rising prices, which is the biggest concern of voters,” the publication said.
The new president will take office on December 10.
Let’s remember that at the beginning of the year in Argentina, for the first time in 30 years, inflation exceeded 100%.
And in July, Argentina and the IMF reached an agreement on a tranche of $7.5 billion.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.