Argentina’s new president Javier Maili, in front of thousands of supporters in front of the Argentine Congress, said: there is no money and there is no alternative to facing this shock, and huge austerity measures must be started.
She pointed out that all forecasts indicate that inflation in Argentina will reach 180% by the end of 2023, and the new president believes that his election is like the fall of the Berlin Wall, and the country must be rebuilt, and this will only be done by starting austerity measures.
Many financial experts have estimated that the country could end 2023 with inflation of 180% year-on-year. Miley blamed previous governments for this situation, and a number of officials, in the Congressional Arena, confirmed that because of this inheritance there will be inflation over the next two years.
Analysts believe that stagflation would discourage investment and cause wage stagnation that would affect the most vulnerable, just as Miley himself predicts.
“This inflationary recession is not much different from what has happened in the last twelve years,” said Mailly, referring not only to the Peronist administrations, but also to Mauricio Macri, who now needs his rule. “In the last 12 years, GDP per capita has fallen by 15% in a context where inflation has accumulated by 5,000%, “he noted, adding” Therefore, we have been living in an inflationary recession for more than a decade, ” although Argentina has never entered an inflationary recession.
Argentine economy minister Luis Caputo is scheduled to announce on Tuesday the first package of economic measures for the government of Javier Maili, presidential spokesman Manuel adroni said.
