Argentine President Formerly a Liberal Economist
During European Tour: "If We Do Well, We Will Receive"
Unemployment Soars and Economic Growth Negative for Two Consecutive Quarters
Javier Milei, the President of Argentina and a former liberal economist, has expressed his ambition to win the Nobel Prize in Economics.
According to a German news agency, President Milei, who is touring Europe, visited Prague, Czech Republic on the 24th (local time) and said, "Together with my chief advisor Damian Reidel, we are rewriting much of economic theory," adding, "If we do well, we will receive the Nobel Prize in Economics."
President Milei, a former economics professor who took office last December, is implementing strong austerity measures such as privatizing state-owned enterprises, dismissing non-regular public officials, and halting public infrastructure projects. As a result, Argentina's consumer price inflation rate fell to single digits in April last year, but unemployment has soared, especially in the construction and manufacturing sectors, leading to concerns about economic recession rather than inflation. According to the Argentine National Institute of Statistics and Censuses, the GDP growth rate for the first quarter of this year was -2.6%. Consequently, Argentina has experienced technical recession with two consecutive quarters of negative growth following -1.9% in the fourth quarter of last year. The International Monetary Fund (IMF) forecasts Argentina's economic growth rate this year at -2.8%.
Despite ongoing protests against President Milei's economic policies in Argentina, he continues to push liberal economic ideas. In particular, the liberal right-wing camp warmly welcomed President Milei during his European tour. The Juan de Mariana Institute, a Spanish right-wing think tank, the German Hayek Society, and the Czech Liberal Institute have consecutively awarded him honors. The Hayek Foundation analyzed that his firm belief in capitalism has had a positive impact on Argentina's economy.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
