In his third message on national radio and television since taking office, President Javier Milei of Argentina announced on Monday night (22) that the country had achieved a financial surplus of 0.2% of Gross Domestic Product (GDP) in the first quarter. According to Milei, this was a historic feat at the global level. He used the opportunity to thank Argentines for their “heroic effort” during this time of adjustment and announced that they should expect further drops in inflation.
Milei stated that this path was the only way to end once and for all the inflationary hell that has plagued Argentina since the fall of convertibility. This policy, adopted between the 1990s and early 2000s, made each Argentine peso worth one dollar. Despite an inflation rate of 11% in March, which was still high but lower than it had been in previous months, Milei saw this as a significant step towards controlling inflation and improving economic stability.
He also spoke about how his government’s accounts were worse than expected, with higher social indicators than those seen during the 2001 crisis and a balance sheet destruction worse than hyperinflation in 89. However, Milei argued that not only was it possible to end the fiscal deficit but also did so in an economically sustainable and morally desirable way. He emphasized that none of this would have been possible without the “heroic effort” of most Argentines who are suffering but know that this is necessary for a better future for their children.
