As an advocate of sound fiscal policy and a strong believer in the power of free markets, I find Argentina's recent economic overhaul under President Javier Milei not just refreshing but essential in today’s world of bloated government spending.
In a bold move, Milei halved the number of ministries and eliminated 70,000 public sector jobs. He also suspended new public works contracts and removed various subsidies, further underscoring his commitment to reducing state intervention in the economy. At the same time, caution has been advised by researchers at Alpine Macro, who contend that the recent surge in Argentine stocks and dollar-denominated bonds might be excessive. The, which measures Buenos Aires-listed stocks, has rallied 40% year-to-date, which is a “one-sigma overshoot above its long-term trend, a level that is hardly sustainable,” Alpine Macro emerging markets strategist Yan Wang writes in an investment brief this week.retains its age-old allure as a safe haven.