SAO PAULO (ICIS)–Argentina’s petrochemicals players are bracing for a severe and potentially year-long economic contraction as President Elect Javier Milei implements his shock recipes for the country’s beleaguered economy.
Last week, Argentinians showed with clarity their desire for change electing far-right and libertarian Milei for the highest office with more than 56% of the votes.
His outlandish proposals during the campaign – dollarization and dismantling the central bank, among others – have given way this week to more moderate statements, although he maintains he is ready to apply a shock therapy soon after being sworn in on 10 December.
Large-scale privatizations, including the country’s oil and gas major YPF, a devaluation of the peso and unification of dollar exchange rates, and the withdrawal of the subsidies which distort competition are all on the cards.
Most petrochemicals sources agree that the measures will be a shock to the system, both for corporations and households; but they also seem to think that, if applied correctly, Argentina’s decades-long financial woes could start to be fixed.
Published by: www.icis.com
Jonathan Lopez
24-Nov-2023
