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 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%).
En sus primeros pasos, Milei dejó de lado los dogmas y optó por el pragmatismo. El programa presentado tiene como centro lograr el equilibrio fiscal el año que viene. Creemos que el gobierno dará la batalla, pero probablemente no logre llegar.