As expected, the Fund's Board of Directors approved the review of Argentina's program, although it made it clear that Massa failed to meet all goals.
The Milei administration has generated high hopes in the market, mainly because of its decision to eliminate the fiscal deficit and undertake structural reforms.
The primaries will take place on August 13th, and the big news is that Cristina Kirchner will run for senator in the province of Buenos Aires.
The new administration is moving very quickly to establish a new policy regime that addresses the main obstacles that have been affecting investing and growth.
The economy grew 5.2% in 2022, mostly driven by 2021’s statistical carryover. Investment displayed the highest growth rate (10.9% y/y), followed by private consumption (9.4%).
In his first steps, Milei left dogmas aside and opted for pragmatism. The program presented is centered on achieving fiscal balance next year. We think the government probably won't be able to get there.