The central bank is running low on dollars, the peso currency is overvalued, inflation is in double digits and the fiscal deficit is estimated at about 7% of gross domestic product.
Advertisement
Later, as major of Buenos Aires, he was known for a technocratic manner that stressed efficiency over style.
The election of right-wing candidate Mauricio Macri as Argentina’s president on Sunday, which just a few months ago was unexpected, is a setback for Argentina and for the region.
Merely hours after Mauricio Macri’s victory in Argentina’s presidential election, Pampa Energia has filed an equity follow-on offering, ready to ride the wave of buoyed investor sentiment in the country. “To export, is to create jobs in Argentina, it needs to be an absolute priority”, Macri said during a panel at the University of Buenos Aires.
In his efforts to please both the poorer Argentines who had happily lived off the generous welfare programs provided by the government until now as well as the pro-business segments who have been frustrated by state restrains on the economy, Macri will have to weigh his moves carefully in his efforts to get the economy moving at a rapid pace. American Airlines is still accepting purchases in Argentina with foreign credit cards.
He said he would also propose that Mercosur, the trade bloc of South American nations, suspend Venezuela for its “undemocratic” actions against opposition politicians. A devaluation for example would hurt Argentines’ purchasing power. Under the Kirchners (first Néstor and then Cristina Fernández de Kirchner), poverty fell by about 70 percent, and extreme poverty by 80 percent.
Macri, former chairman of popular football club Boca Juniors, will take office as national president on December 10.
Martin Dinatale, political editor at La Nacion newspaper in Buenos Aires, agreed: “There is a real air of change in the country, though we are still a divided country with challenges”.
Guillermo Dietrich, an economist with experience in auto retailing, will handle transport, while agriculture will be run by Ricardo Buyaille, a former vice president of the Argentine Rural Confederation, a big farm group. “I have faith Macri will be an honest politician”.
Macri has proposed to immediately lift restrictions on imports and on USA dollars.
Mr. Macri tapped Susana Malcorra as foreign minister.
He has vowed to negotiate with foreign creditors who have sued Argentina in the USA courts for unpaid debts.
Advertisement
“The President emphasized the longstanding partnership between the United States and Argentina and conveyed his commitment to deepen cooperation on multilateral issues, improve commercial ties, and expand opportunities in the energy sector”, the statement said.
