December 13th, 2024
1. Javier Milei presented his management balance sheet one year after taking office
In his message on national TV, Argentine President Javier Milei announced a tax reform to reduce 90% of national taxes and return fiscal autonomy to the provinces, free competition of currencies allowing transactions in any currency except for taxes (which will remain in pesos), and attraction of investments of more than US$11.8 billion in key sectors. He proposed eliminating tariff barriers in Mercosur, reducing the common external tariff and promoting a free trade agreement with the United States. In the area of deregulation, he announced a deep reduction in public spending. In security, he highlighted the law of recidivism for repeat offenders, the anti-mafia law based on the RICO model of the United States, the reform of the Federal Police to create an Argentine FBI, an anti-narcoterrorism unit and the lowering of the age of imputability. Finally, he presented the Argentine Nuclear Plan focused on new reactors and advanced technologies, integrating artificial intelligence.
La Nación: ¿Qué dijo Javier Milei? El texto completo del discurso ofrecido por cadena nacional
2. The President announced the Argentine Nuclear Plan, to promote the development of AI in the country
During the president’s speech on the balance of his first year in office, he announced that an Argentine Nuclear Plan will be rolled out. Said plan will have the objective of collaborating in attracting investments for the development of Artificial Intelligence in the country. “We have energy to spare, cold and inhospitable lands to spare, and quality human resources. It is not for nothing that we are the country with more technological unicorns per capita in the region. These three factors combined form a perfect storm to attract high grade investments in Artificial Intelligence (AI)”. The announcement is linked to the increase in energy use that technology development will demand. Under the plan, the “construction of new reactors, as well as research into emerging small or modular reactor technologies, while maintaining the highest safety and efficiency standards” will be contemplated. The plan will be presented in the next few days by Demian Reidel, head of the Argentine President’s Council of Advisors.
Ámbito Financiero: Javier Milei anunció un Plan Nuclear Argentino para construir nuevos reactores
3. Inflation and basic food basket data released
INDEC announced that the Consumer Price Index in November was 2.4%, accumulating 112% so far this year and 166% in the last 12 months. On the other hand, in November the total basic food basket (CBT) rose 1.5% compared to the previous month and the basic food basket (CBA) rose 1.1%. In order not to be poor, a typical household needed AR$1,053,322 pesos in November (the value of the CBT) and in order not to be indigent it had to have an income of at least AR$461,983 (CBA).
La Nación: La inflación de noviembre fue de 2,4% y acumuló 112% en el año
4. Private employment grew 0.2% in September and wages fell 2.3% in real terms with respect to the previous month
Formal employment in the private sector in Argentina showed growth of 0.2% in September, up for the second consecutive month, reaching the highest level since December 2017. This increase was mainly driven by the construction, manufacturing and commerce sectors. According to data from the Labor Department’s Monthly Report, 12,700 new jobs were added in September. However, real wages did not experience a significant improvement due to the persistent impact of inflation, which in year-on-year terms reached 146.1%. The nominal average salary grew by 12.3% in September, but remained below the inflationary index, showing a drop of 2.3% in real terms with respect to the previous month. This data is from the Labor Situation Report prepared by the Ministry of Labor. Although formal employment maintains a positive trend, the challenge of recovering the purchasing power of wages continues to be a major obstacle in the current economic context.
Ámbito Financiero: Se recuperan el empleo y el salario en el sector privado
5. Trump has already appointed the new U.S. ambassador to Argentina
U.S. President-elect Donald Trump announced Wednesday night that Peter Lamelas, a Cuban-born doctor and businessman from Florida, will be the future U.S. ambassador to Argentina. The nominee is of Cuban origin and lives in Palm Beach, the same city where Trump has his Mar-a-Lago residence. On X, Lamelas posted: “Under his leadership, the U.S.-Argentina relationship will achieve greatness like never seen before.” In another tweet, he added: “Milei brings the same conviction to change the status quo in Argentina that President Trump brings to the United States.”