"We are seeing some very positive news on the state of the Argentina's economy"

CGTN Europe

Remi Piet, Co-Founder & Senior Partner at Embellie Advisory speaks to CGTN Europe about the economic response to the latest policies brought by President Javier Milei and the investors' sentiment.

Transcript

00:00 Well let's talk now to Remy Pierre, co-founder and senior partner at Embelli Advisory.

00:05 Good to see you Remy, thank you for joining us. So on paper this sounds like great news doesn't it,

00:10 with a fall in the rise in inflation, but will this actually end up helping the economy in Argentina?

00:17 Well thank you for the invitation. Indeed you're absolutely right, when you're looking at results

00:21 recently, especially on the front end inflation, but not only, you're seeing some very positive

00:26 news on the state of the Argentine economy. Monthly inflation dropping from 25% as an average

00:32 last year per month to 8% this month, so definitely cutting by a factor of three. But also a strong

00:38 decision on governmental spendings, on trying to reassure investors that Argentina is a good

00:46 destination and that there should be a strong potential from the Argentine economy to bolster

00:52 and create some wealth for both international investors and for the local population. And

00:56 Argentina is a country that has very strong natural resources capacities, especially in the

01:00 field of energy transition. The Los Angeles copper deposit in San Juan, other lithium deposits in

01:06 Salta and Cordoba for example, are really showing the potential for Argentina to be part of

01:13 of this energy transition trend if it is able to attract investors to develop those projects. And

01:18 this is what Javier Milady is trying to do, hoping that down the road with the new confidence in

01:24 terms of the state of the Argentine economy, this eventually will trickle down to the population by

01:29 encouraging entrepreneurship and limiting governmental spending. We should say of course

01:33 that inflation is still enormously high, still in three figures despite this reduction in the amount

01:38 it's rising. And despite this high inflation, there have been warnings that these new measures

01:44 could actually lead to an economic slowdown. You're right, it's still quite high. You can expect

01:50 the results to be shown on day one. There is the risk that the impact on especially the valuation

01:56 of the peso impacts much more the poorer side of the population, some of the covers going to

02:01 spending in terms of public transportation and others will definitely impact some of the

02:05 part of the population that would need those projects. But down the road, the objective is

02:10 really to kind of create the conditions for future economic growth by attracting foreign investment,

02:15 by building on those natural resource wealth of the country and providing confidence among

02:21 different actors. There's been very strong incentives for foreign investment decreased to

02:26 15% of taxation for some of those investors in terms of income taxes, creating conditions of

02:33 strong regulations. And there's all around kind of a support and kind of enthusiasms towards

02:39 Argentina becoming one of the new leaders for the exports of mining products, especially as Peru and

02:45 Chile are in the continent. There are strong capacities in Argentina that can be tapped

02:50 and can be developed for the good of the entire country and the population.

02:53 Remy, good to talk to you. Thank you very much indeed for joining us today. That's

02:58 Remy Pierre, co-founder and senior partner at Mbelli Advisory.

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