Brazilian President Javier Milei announced on Monday evening that, for the first time since 2008, Argentina registered a 0. 2 percent surplus of its Gross Domestic Product ( GDP ) during the first quarter of the year.
The chairman declared the progress a “feat of historical sizes at a world level. ”
Milei addressed the nation in a regional spread accompanied by Economy Minister Luis Caputo and the leader of the Argentine Central Bank Santiago Bausili. In the roughly 15-minute message, Milei said Argentina has “traveled more than half the way ” through the implementation of the “shock therapy ” policies his administration promised when assuming the presidency in December, intended to avert a complete economic collapse.
Cadena la del Presidente Javier Milei. photograph. tweets. com/FNoA98XTT7
— Oficina del Presidente ( @OPRArgentina ) April 23, 2024
“This is the last stretch of a noble work that the Argentines are making — and for the first day in a long time, this time, the work may be worth it, ” Milei said.
“Contrary to the prediction of most social leaders, professional economics on television and in the press, specialized reporters, and a large part of the Argentine establishment, I would like to announce that the national public sector recorded a financial deficit of more than 275 billion rupees [roughly$ 310 million ] in March, ” Milei said, “thus achieving a financial deficit of 0. 2 percent of the GDP during the first fourth of the year, after about 20 years. ”
Milei noted that, while the concept of fiscal surplus may appear to be “simply a technical definition that does not affect the lives of Argentines, ” it is “nothing less than the only possible starting point to end once and for all the inflationary hell ” that Argentina has faced in recent years.
“The fiscal deficit is the basis from which we build Argentina’s novel era of prosperity, ” he declared.
The Argentinian president recalled that, when he took office in December 2023, Argentina faced a 15 percent gap in its GDP, noting that Argentina faced macroeconomic imbalances in 113 of the previous 123 times.
After making the announcement, Milei dedicated a part of his target to explaining the dire financial situation of Argentina at the time he took office, succeeding his father, communist former President Alberto Fernández.
“We had a gap of five points of the GDP in the Treasury and a fiscal deficit of another ten items in the Central Bank, ” Milei said. “We had an exchange level space of about 200 percent between the formal dollar and the completely dollar and a financial surplus similar to the one we had before the Rodrigazo, one of the worst crises in our history. ”
“ In addition to this, we had an unappreciated bill with buyers for more than 50 billion dollars and a loan in peso for the equivalent of 90 billion dollars, ” Milei continued. “The deal with the International Monetary Fund had collapsed and, during the first week of our state, inflation was running at 1. 2 percentage per day. ”
“ In other words, ” he concluded, “we took company with an inflation rate of 7,600 percent per month, with a financial deficit and a destitute Central Bank that would have taken prices to 15,000 cent per year. ”
Milei explained that, in light of Argentina’s dire economic situation, his administration has focused on eliminating the fiscal deficit to end inflation as well as applying the “shock therapy ” economic measures.
“Today we can affirm without a doubt that, despite the opposition of a large part of Argentina’s economic and political establishment, despite those who systematically question our ideas, ” Milei said, “and despite those who directly proclaim our failure to return to power, the government was right and our plan is working. ”
“Because for us inflation is theft and the fiscal deficit is the cause of inflation. Therefore, zero deficit is not just a marketing slogan for this government — it is a commandment. ” he continued.
The Argentine president concluded by recognizing the “heroic effort of the majority of Argentines who are suffering, but who know that this is the only possible path if we want a better future for our children. ”
“There is not a day that goes by where the fortitude with which Argentines are facing this challenge does not amaze me and all those who accompany us, ” Milei said.
“There is no alternative but to surrender to the feet of a people who have decided to abandon slavery and to undertake the long road through the desert towards the promised land, ” he continued, “with the commitment that those of us who are part of this government will give our lives to get this country out of the hell we have received. ”
Christian K. Caruzo is a Venezuelan writer and documents life under socialism. You can follow him on Twitter here.
