Posted on 12/20/2024 7:39:32 PM PST by SeekAndFind
Argentina has come out of a deep recession in a major victory for the country’s unorthodox President Javier Milei, who has spent the past year enacting sweeping — and painful — reforms in Latin America’s third-largest economy.
Gross domestic product grew 3.9% in the July-to-September quarter compared with the previous three months, Argentina’s statistics agency said Monday. The agriculture and mining sectors drove the expansion, with consumer spending also growing strongly. But manufacturing and construction suffered sharp declines in output.
The news of the economic rebound comes a year after Milei was elected on a ticket to tackle chronic hyperinflation and overhaul the long-suffering economy. He has slashed government spending, reducing sky-high inflation and helping repair the country’s finances. But these measures have also pushed up unemployment and the poverty rate.
The economist has won praise from US President-elect Donald Trump, whose government efficiency tsars, Elon Musk and Vivek Ramaswamy, appear keen to replicate his budget cuts in the United States.
Argentina’s flagship Merval stock index, which tracks around two dozen of the country’s most valuable listed companies, closed more than 7% higher Monday. So far this year, the index is up 174% as investors have welcomed Milei’s radical reforms.
Milei inherited an economy in crisis, racked by hyperinflation that reached 211% last December and which was fueled by previous governments’ money printing to fund spending. According to the International Monetary Fund, the country’s biggest creditor, he has delivered “better-than-expected results.”
The IMF, which approved a bailout for Argentina in 2018, the fund’s biggest ever, sees the economy shrinking by 3.5% overall this year, following a 1.6% contraction last year. Projected growth of 5% next year will, in simple terms, just about reverse those declines.
(Excerpt) Read more at cnn.com ...
Conservatism works every time it’s tried. - Rush Limbaugh
Agriculture and mining are the primary foundation for economic growth. Manufacturing, construction and security are the secondary blocks.
Once those are in place growth will follow if you have a couple of things in place.
1. You must have an easy system for owning property.
2. You must have a mostly honest judiciary that will uphold those rights.
Those two things have been the down fall of more then one economy because the first you can put in place by law but the second depends on the men who are enforcing the laws.
And, as is always the case, people are the weak link.
I’ve heard that Argentina is a good place to live, now. Kind makes you wonder.
Problem is HOW LONG before it is not a good place again?? Just like the US things can be great for 4 years and change with ONE stinking election!!
I've heard that Argentina had the potential to become an economic powerhouse in the 20th century, but they went down the socialist road and castrated themselves economically.
Partly it was the world wide economic depression and the second world war. Partly it was all the Axis money that ran away into Argentina. They needed a strong man in power to protect them. And the guy they picked could not figure out how to run an economy to save his life. Leftist never can.
Mostly because they just can not help but stick their fingers into things that should just be left alone. They live in a fantasy world where the clocks always tick in perfect time and they think that if they meddle just a bit they can get there.
The world is messy and they can not stand it.
The really scary part is how many years it can take to recover from bad decisions, and many times you never recover.
One thing that is certain is the uncertainty of South American politics.
I’m GENUINELY shocked that the globalists have let him succeed. I figured an unprovoked war, or assassination attempt would befall them once it started to look like it was going to work.
Lest other countries see how things can work out and start getting ideas!
So before, Milei was a "Right Wing Populist", in the same mold as Trump. In fact, he was widely described as the "Latin American Trump". The leftist media was salivating at the prospect of his failure bringing Socialism/Communism back to Argentina, returning them to Russia's orbit. But now that Argentina is turning into a story of success, he's a "Libertarian".
Milei’s thing is slashing tariffs and promoting free trade. In Argentina it’s the leftist Peronists who like tariffs.
Milei is a free trade globalist. He’s broken the tariff driven cartel of the Peronists.
I wouldn't say that unless it's a comparative advantage of your particular country.
OK. And your point is?
Agriculture and Mining are what everything else depends on.
“Just like the US things can be great for 4 years and change with ONE stinking election!!”
You got it here, gyrl...
;-)
Pass a bill…. “If it ain’t broke don’t fix it.”
Certain countries are smaller. Agriculture and mining may not be viable industries in those countries.
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