Milei announces fiscal surplus nationally, market celebrates and Argentines react with pots and pans

The Argentine president announced the record of a fiscal surplus in the first quarter of this year and showed his support for the Minister of Economy, Luis Caputo, after criticism from economists of the economic direction and the recession experienced by the country. The spending cut, which generated the fiscal surplus, was defined by Milei as “a historic fact in global terms”. It was the first Argentine surplus in a first quarter, he said, since 2008. Milei read his speech sitting in the presidential chair and surrounded by his economic team, including Minister Caputo – all of them standing next to him, in a communication format that has already became characteristic of his management. He said that “the era of the present state is over.”

Milei told the Argentines that the effort is paying off. “I understand that the situation we are living in is difficult,” she said. And she said politicians “want to spend a lot” because they are “beneficiaries of the spending.”

“We know there is still a long way to go (…). But inflation is falling,” he stated. According to the president, the economic plan “is working.” And that the fiscal surplus is the “only” starting point to “put an end to Argentina’s inflationary hell forever since the end of convertibility.” The convertibility regime lasted ten years, during the Menem government (1989-1990), and kept the peso, the national currency, pegged to the dollar.

In his 16-minute speech, the president once again criticized economists and the press in general, saying that they are mistaken about his government and the results of his administration.

Milei’s speech was held one day before the expected broad demonstration called by public universities, against the budget cut. Private universities also declared support for the protest, in defense of universal and free education. According to data released over the weekend, sales in Argentina fell by 45%, on average, including in the household appliances, automobiles, construction and medicine sectors, among others.