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1 [1] (August 5, 2024)

handle is hein.crs/goveqft0001 and id is 1 raw text is: Argentina: An Overview Located on the Atlantic coast of South America's Southern Cone, Argentina is the third-largest economy in Latin America (after Brazil and Mexico). U.S.-Argentina relations have traditionally been strong, and many Members of Congress maintain interest in security and commercial ties, among other aspects of the relationship. Argentina at a Glance Capital: Autonomous City of Buenos Aires Area: 1.1 million square miles (about the size of the United States east of the Mississippi) Population: 47.2 million (2024, IMF est.) GDP/Per Capita GDP: $604.3 billion/$12,812 (2024, current prices, IMF est.) Real GDP Growth (constant prices): -9.9% (2020), 10.7% (2021), 5.0% (2022), -1.6% (2023, est.), -2.8% (2024, est.) (IMF) Key Goods Export Trading Partners: Brazil (18%), United States (8%), China (8%), Chile (7%) (2023, INDEC) Key Goods Import Trading Partners: Brazil (23%), China (20%), United States (12%), Paraguay (5%) (2023, INDEC) Sources: International Monetary Fund (IMF); World Economic Outlook Database, April 2024; and Argentina's National Institute of Statistics and Censuses (INDEC) Pohtca Environment The current president of Argentina, Javier Milei, is an economist and leader of the socially conservative and economically libertarian La Libertad Avanza (LLA, Freedom Advances) coalition. Milei won 56% of the vote in a runoff presidential election in November 2023. His anti- establishment rhetoric and pledges to improve the economy appeared to resonate with voters experiencing an economy marked by high inflation and rising poverty under the Peronist government of President Alberto Fernndez (2019- 2023). In legislative elections held concurrently with the presidential election, no political coalition secured a majority in either chamber of congress. Milei's LLA obtained 38 out of 257 total seats in the Chamber of Deputies and 7 out of 72 seats in the Senate. Right-leaning parties that have largely supported LLA's policy agenda, including the center-right Propuesta Republicana (PRO, Republican Proposal), secured 42 seats in the Chamber of Deputies and 6 seats in the Senate. The Peronist Uni6n por la Patria (UP, Union for the Homeland), largely in opposition to Milei, obtained 99 seats in the lower chamber and 33 seats in the upper chamber. President Milei was inaugurated to a four-year term on December 10, 2023. Upon inauguration, the Milei vic~ Updated August 5, 2024 administration began implementing policy changes intended to overhaul Argentina's economy. It devalued the Argentine peso by more than 50% to decrease the country's fiscal deficit and reduce macroeconomic and trade imbalances. The government has continued to devalue the peso by 2% each month as part of its long-term program to reduce domestic consumption and restore macroeconomic balance. To cut government spending, the Milei administration eliminated 9 out of 18 federal government ministries, initiated a plan to cut more than 70,000 public sector jobs, and froze over 2,700 public works projects. The government also began to roll back energy and transportation subsidies. On December 20, 2023, Milei issued a Decree of Necessity and Urgency (DNU), implementing more than 300 economic reforms. The measures focus on deregulating Argentina's economy, including the elimination of price controls and a scaling back of labor, employment, and rental housing regulations, among other actions. A federal court, however, ruled the DNU's labor reforms unconstitutional in response to a legal challenge filed by the country's largest labor federation; the Milei government signaled it would appeal the decision to the supreme court. In June 2024, LLA and its allies secured legislative victories after facing challenges to Milei's legislative agenda during the first six months of his administration. The Milei administration negotiated with opposition parties to gain passage of a narrower version of an omnibus economic reform law he had proposed early in his term. The law gives President Milei the power to legislate by decree on administrative, economic, financial, and energy issues for one year; establishes incentives for investments of at least $200 million in specific sectors; eases labor regulations; and authorizes the privatization of several state-owned firms, among other measures. Milei also secured passage of a fiscal reform package, reinstating some taxes on income and personal assets, among other measures. The Argentine Senate's passage of Milei's economic reform law in June 2024 reportedly triggered violent protests. Some observers suggest that Milei may face increased pressure to improve the country's economic situation following adoption of the scaled-back version of his omnibus economic reform law. While Milei's approval ratings have generally remained above 50% since assuming office, several sectors of society, including historically powerful labor unions, have organized protests and national strikes in response to the administration's economic austerity policies. Some analysts posit that Milei's ability to improve the economy before midterm congressional elections set for December 2025 could shape congressional support for his coalition during the second half of his term.

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