Has the economic miracle in Argentina took place
Over the next 30 years, Argentina will be the country with the highest economic growth, assures President Miley. But it won’t happen overnight.
Just a few minutes of walking through the Argentine capital Buenos Aires is enough to feel the division: optimism against skepticism, approval and disapproval. « Entrance forbidden » is written on posters in a shop where President Javier Miley and Security Minister Patricia Bulrich are not welcome. However, a new residential building is being built nearby – an investment in the future. The feeling of uppower is a fact.
Javier Miley has been in office for 500 days. And hardly any other head of state is attracting as much attention worldwide as the Libertarian President of Argentina. Sometimes the supporters of the left camp welcome him with frank hatred – because of his liberal economic course, but many economists see in him something like a liberator of a bureaucracy and regulations.
Cancellation of currency restrictions
Miley’s last success is the end of the so -called. « Cepo » (Shackles in Spanish). « Cepo » has been a tool used by a number of Argentine governments since 2003 in the fight against inflation to limit access to the desired US dollar. In mid -April, the « shackles » were canceled, allowing individuals and companies to carry out currency transactions without restriction.
« Contrary to the worrying forecasts of many local and international economists and analysts, the currency course has not jumped to the sky, » said Aldo Abram of the Fundacion Libertad Y Progreso Brain Trust in Buenos Aires. « On the contrary, the exchange rate stabilizes below the level of opening, trade normalizes without crisis or devaluation, » he adds.
The government celebrates this with a photo of Miley and its Minister of Economy Santiago Caputo posing as a goal scorers.
Miley asks for more patience
The president himself believes that it is on the right track: « After more than a hundred years, a chronic budget deficit is now one of the five countries in the world that spend only what they earn, and neither peso more, » Miley said in his television address a few days ago. He announced the end of the currency restrictions and promised his compatriots a better future: « In the next 30 years, Argentina will be the country with the highest economic growth. This will not happen overnight, but it will happen gradually with the confidence that we have written our homework. »
It is a positive fact that according to the statistical body, poverty has decreased to 38.1 percent, which is slightly below the poverty inherited by the previous government. According to Indec, in the management of Miley in 2024, inflation also dropped – by 44.5 percent compared to the previous year.
Sminya Blanke from the Friedrich Ebert Foundation near the German Social Democrats in Buenos Aires is skeptical of Argentina’s economic development. In an interview with the State Gazette, she criticized the government for using the exchange rate to delay inflation. This made the peso stronger, resulting in a Big Mak in Argentina costs 5.48 euros – about as much as in Germany. But the minimum wage of 1.06 euros per hour is far below the German, which is 12.82 euros. « So there is a kind of social felling that mainly affects income, educational policy, research, culture, public infrastructure, etc., » blank criticizes Blanc.
Hans-Dieter Holzman of the Friedrich Nauman Foundation in Buenos Aires is a greater optimist: « With the abolition of capital movement and with the new more flexible currency courses, important obstacles to the economic restoration of Argentina have been eliminated, » he told SG.
The two faces of Argentina
The two faces of the country can be seen in the center of the capital: full restaurants and cafes that do not fit at the opposition of the opposition for crisis at all. A few days ago, a few days ago were involved, and the unions seemed to replay with the three common strikes organized by Miley’s assumption. Most Argentines want to move forward, work and leave the crisis behind.
On the other hand, there are retirees who feel the consequences of the strict savings policy in their pockets. They see their purchasing power decrease and every week they go out to demonstrate. Their protests seem to refute Miley’s promise that the reforms will have to pay only the « caste », ie. The elite and people with the influence of the platform camp, who were disposed of in the country until December 2023.
