Argentina's president-elect determined to revive the economy

In an interview late Tuesday, Mr. Milei said the new government, which takes office on December 10, will have to make drastic spending cuts, something he pledged during the election campaign to cut state spending.

Argentine President-elect Javier Milei. Photo: Reuters

“There is no money. We have no money,” he said. “If we don’t make fiscal adjustments, we will have hyperinflation. We will have 95 percent poverty and 70 or 80 percent homelessness.”

Argentina, South America's second-largest economy , is battling inflation at 143% and its central bank's net reserves are estimated at minus $10 billion. More than two-fifths of the population is in poverty and recession is looming.

Mr Milei defeated Economy Minister Sergio Massa in Sunday's election, after the ruling party was blamed for the crisis for high spending, which has helped millions but proved unsustainable.

Mr Milei said he would limit the size of the state and achieve fiscal balance by the end of 2024.

“I will make a shock adjustment and bring the economy into financial balance. Since I have pledged not to raise taxes, I will cut spending,” he said, adding that this could mean very difficult months for the country.

"Financial balance is non-negotiable. Financial balance is not up for debate. I will fire any minister who spends too much," he asserted.

Hoang Ton (according to Reuters)

Source: https://www.congluan.vn/tong-thong-dac-cu-cua-argentina-quyet-vuc-day-nen-kinh-te-bang-cac-lieu-phap-gay-soc-post273598.html