Argentina’s economic prospects generate uncertainty and the outlook may vary based on what Congress decides with the measures that President Javier Milei wants to carry out. Therefore, the financial consultant, Omar DeLuca explained to Canal E that, “hThere is a lot of expectation with the result in deputies and the Senate of the Omnibus Lawwhich had some adjustments, but it’s like This law will set the course for at least the next 6 months“. “If the approval is delayed, I think that “Milei has a plan to issue other decrees to carry out his government plan.”
“Today it is focused on balancing public finances to reach a 0 fiscal deficit”, so that later “with an exchange rate policy we can control inflation in the future,” said the finance consultant. He then added “There is a big bet from Milei and her ministers to enter a second semester with much lower inflation, but it will depend on the approval of the DNU.”
Regarding the agreement with the IMF, the interviewee explained that, “The market took it as something positive but that’s all there was to it”. “The market “It needs the DNU and the law to be approved and a zero fiscal deficit to be reached.” The agreement with the Fund “helped calm the dollar a little, but the pressure on the dollar remains and even more so in the coming weeks there is no more compelling news.”
The exchange rate was also impacted by “the impact of exporters,” who in the midst of the liquidation caused the North American currency to decline.
Javier Milei’s trip to the World Economic Forum in Davos
Regarding the implications of Milei’s trip to the World Economic Forum in Davos, Omar de Luca explained that, “It is very important that Milei makes this type of trips to integrate Argentina into the world.“.
Anyway, for the interviewee: “This type of travel does not diminish the importance of finalizing the packages being debated by Congress.” In this sense, “we see a good sign from Milei in giving in on some points to be able to release its package of measures.”
Javier Milei’s negotiations in Congress
The president began to concede certain aspects that make up the Base Law, although there are others that will not be negotiated. “Things that are not negotiated are with the adjustment one shotwhich although it impacts the middle class and the lower class, is the only way for us to value all the initial effort in the second semester“Milei is not going to negotiate that,” stated De Luca. This means that, “The entire Argentine economy is managed by supply and demand without State intervention,” he indicated.
Javier Milei’s dollarization plan
“Dollarization is still latent and for me it will accelerate in the second semester when we begin to move towards a 0 fiscal deficit and the exchange rate is lifted.”“, concluded the interviewee.