Official results have revealed that Javier Milei has emerged victorious with nearly 56% of the vote, while his opponent, Peronist Economy Minister Sergio Massa, conceded defeat in his speech. Milei, in his victory address, pledged to usher in a new political era, declaring an end to the current model of decline. He emphasized that the consequences of this model are evident, with Argentina’s ranking plummeting to 130th from its previous status as the wealthiest nation in the world. Furthermore, he highlighted the alarming statistics of poverty, stating that half of Argentines are living in poverty and an additional 10% are in extreme destitution. Milei condemned the impoverishing system of the ruling class and expressed his commitment to embracing the Libertarian ideology in order to restore Argentina’s position as a global power.
However, the president-elect will face significant challenges upon taking office. He will be confronted with the significant financial constraints of the government and central bank, as well as a burdensome $44 billion debt program with the International Monetary Fund. Additionally, he will have to tackle the soaring inflation rate, which is approaching 150%, and navigate a complex web of capital controls.
Milei’s victory has shaken up Argentina’s political landscape and economic roadmap, and its repercussions may extend to the country’s trade in essential commodities such as grains, lithium, and hydrocarbons. It is worth noting that Milei has been critical of China and Brazil, expressing his unwillingness to engage with “communist” nations and advocating for stronger ties with the United States. Furthermore, he holds staunchly anti-abortion views, supports looser gun laws, and has publicly criticized Argentine Pope Francis.