Under newly elected President Javier Millay, Argentina has a surplus for the first time in nearly 12 years, ending its first monthly budget with a surplus of $589 million at official U.S. exchange rates.
The country’s Economy Ministry announced the milestone on Friday, adding that the surplus also included unpaid interest payments on public debt.
The Ministry of Economy said this was “the first (monthly) budget surplus since August 2012 and the first surplus in January since 2011,” Telam news agency reported.
Since taking office on December 10, Millay has delivered on a number of campaign promises to overhaul Argentina’s historically socialist federal government.
Argentina’s poverty rate rises to 57.4%, the highest level in 20 years
A giant dollar bill with President-elect Javier Millei’s face on it as people begin to gather outside the National Assembly ahead of his inauguration ceremony on December 10, 2023 in Buenos Aires, Argentina. A supporter of. (Marcelo Endelli/Getty Images/File)
Millais’ overhaul of the country’s economy is not expected to go smoothly, and he describes it as economic “shock therapy” that will negatively impact thousands of people.
In December, Milais signed a decree outlining a plan to address the country’s financial crisis, including the privatization of state-owned enterprises.
Argentina, South America’s second-largest economy, is suffering from 143% annual inflation, causing its currency to collapse.
In Argentina, use of soup kitchens is increasing among hungry families as inflation rises
President Javier Millay of Argentina (Thomas Cuesta/Getty Images)
The country also has a $43 billion trade deficit and $45 billion in debt to the International Monetary Fund, with $10.6 billion due from private and multilateral creditors by April.
Mr Millais is reportedly negotiating with the International Monetary Fund over the debt and has vowed to balance the budget this year.
Last weekend, it was reported that Argentina’s poverty rate rose to 57.4% in January, reaching the highest rate in at least 20 years.
Argentine President Milay holds livestream lottery for his final salary as a lawmaker
A sign outside a store in Buenos Aires, Argentina, reads in Spanish: “We accept dollars.” (Reuters/Thomas Cuesta/File)
Immediately after taking office in December, Milay devalued the peso, causing poverty levels to worsen.
By the end of the same year, the poverty rate was 49.5%.
The devaluation of the peso increases the price of everything.
CLICK HERE TO GET THE FOX NEWS APP
“Politicians need to understand that the people voted for change and that we are willing to give our lives to move it forward,” Millais said on social media. “We’re not here to play the mediocre game of politics. We’re here to change this country.”
