Argentina’s President Javier Millay announced on Monday night that for the first time since 2008, Argentina recorded a surplus of 0.2% of gross domestic product (GDP) in the first quarter of this year.
The president declared the achievement a “historic achievement on a world level.”
Milay addressed the nation on national television alongside Economy Minister Luis Caputo and Argentina’s Central Bank Governor Santiago Bausiri. In a message lasting about 15 minutes, Millay said Argentina was “more than halfway through” implementing “shock therapy” policies promised by the government when it took office in December and aimed at avoiding a complete economic collapse. ” he said.
President Javier Millay Cadena. pic.twitter.com/FNoA98XTT7
— Officina del Presidente (@OPRArgentina) April 23, 2024
“This is the last stage of the heroic effort that the Argentines are making. And this time, for the first time in a long time, the effort will be worth it,” Millay said.
“We would like to announce that, contrary to the expectations of most political leaders, professional economists and journalists on television and in the media, and most of the Argentine establishment, the national public sector has recorded a budget surplus of over $275 billion. I think peso [roughly $310 million] “This resulted in us achieving a budget surplus of 0.2% of GDP in the first quarter of this year for the first time in almost 20 years,” Millais said.
Millay said that while the concept of a budget surplus may seem like “just a technical definition that has no impact on the lives of Argentines,” it is “the only possible starting point to end inflation hell once and for all.” It’s nothing else,” he said. Problems facing Argentina in recent years.
“The fiscal surplus is the basis for building a new era of prosperity for Argentina,” he declared.
The Argentine president recalled that when he took office in December 2023, Argentina was facing a deficit of 15% of gross domestic product (GDP), adding that Argentina has faced a budget deficit in 113 of the past 123 years. He pointed out.
After the announcement, Millay devoted part of his speech to explaining Argentina’s dire economic situation at the time, when he took office to replace former socialist president Alberto Fernández.
“At the Treasury we had a deficit of five points of GDP, and at the central bank we had a deficit of another 10 points,” Millais said. “The exchange rate difference between the official dollar and the free dollar was almost 200 percent, and the currency surplus was similar to before the financial crisis. Rodrigazo, one of the worst crises in our history. ”
“In addition to this, we had over $50 billion in unrecognized debt with importers and $90 billion worth of peso-denominated debt,” Millay continued. “The agreement with the International Monetary Fund collapsed, and during the first week of the administration, inflation was running at 1.2% per day.”
“In other words, we came into office with an annual inflation rate of 7,600 percent, and with a currency surplus and a bankrupt central bank, the inflation rate would have reached 15,000 percent a year,” he concluded.
Millay explained that given Argentina’s dire economic situation, the administration is focused on eliminating the budget deficit and applying “shock therapy” economic measures to end inflation.
“Today, despite the opposition of the majority of Argentina’s economic and political system, despite those who systematically question our ideas, and we directly declare the failure of our return to power, Despite the people, we can say without a shadow of a doubt,” Millais said. The government was right and our plan is working. ”
“Because to us, inflation is theft and deficits are the cause of inflation. So zero deficit is not just a marketing slogan for this government, it is a commandment.” He continued.
The Argentine president concluded by praising “the heroic efforts of the majority of Argentines who, despite their suffering, know that this is the only possible path if they want a better future for their children.”
“There is not a day that goes by that I and all those accompanying us are not amazed by the indomitable spirit of the Argentine people in the face of this challenge,” Millay said.
“We have no choice but to surrender to the feet of a people who have decided to renounce slavery and walk the long road through the desert to the Promised Land,” he continued. This government will sacrifice our lives to save this country from the hell we have been put through. ”
Christian K. Caruso is a Venezuelan writer who chronicles life under socialism. You can follow him on Twitter here.
