‘Strap in’: Imports surge and markets fear return of ‘libertarian Milei’ |
Argentina’s imports of consumer goods have broken an all-time record, even as local manufacturers insist they are “blowing out” inventory to cover operating costs. All of this is playing out against a backdrop of shrinking household purchasing power, with families increasingly falling behind on their debts.
The government is clinging to its plan, even without the promised US$20 billion loan from U.S. banks, and trying to keep the dollar in check. Meanwhile, markets fear the return of “libertarian Milei.” The shift in the landscape and the contradictions of Economy Minister Luis Caputo are adding to the jitters.
“Strap in,” President Javier Milei said during a speech at Corporación América last week. It was a metaphor for a crisis in the productive sector that appears here to stay. One industry representative told the Herald’s sister title, Ámbito, that the sector is on alert amid a drop in activity that’s leading to “high levels of uncollectible debt” and a breakdown in the market.
“We have to blow out........