The fact that economic activity year over year has increased at all (after 7 months with Milei) is just astonishing.
It is astonishing because Milei inherited a deficit of 15% of GDP, so he cut 30% of government spending on the first month to get to fiscal surplus that month. He inherited a broke central bank (-11.8B in reserves) and he's recovered back to -4B (still some way to go). He inherited 50B of debt with exporters (they have "cepo cambiario"/exchange control policies). So even after having to cut down so much, now the economy is starting to recover.
BTW the reason Argentina just can't stand ANY deficit at all is because it creates inflation. It creates inflation because NO ONE loans them money, so the only way to have deficit is to "print money" from thin air.
It is astonishing because Milei inherited a deficit of 15% of GDP, so he cut 30% of government spending on the first month to get to fiscal surplus that month. He inherited a broke central bank (-11.8B in reserves) and he's recovered back to -4B (still some way to go). He inherited 50B of debt with exporters (they have "cepo cambiario"/exchange control policies). So even after having to cut down so much, now the economy is starting to recover.
BTW the reason Argentina just can't stand ANY deficit at all is because it creates inflation. It creates inflation because NO ONE loans them money, so the only way to have deficit is to "print money" from thin air.