Amidst growing economic crisis in Argentina, Alberto Fernandez has been elected as the country’s 60th president. Fernandez and running mate, former president, Christina Kirchner won almost 49% of the presidential vote, ending a four-year-term of conservative President Mauricio Macri. The left-leaning duo promised to improve the country’s financial situation following years of drought-induced inflation and austerity, and alleviate the discomfort of the middle and working classes.
The election of Fernandez comes after months of financial turmoil in the South American country, with economic recession, high inflation, and a sharp devaluation of the Argentinian peso. Due to their market-friendly policies, the Macri government had initially enjoyed support, but drastic cuts in social spending done to curb inflation eventually cost him his seat in office.
Fernandez assumes a difficult situation with the national economy. In his victory speech, he stressed on the need to restore lost purchasing power and work on the debt burden which currently stands at $114 billion. He laid out a strategy of using fiscal stimulus to reignite growth, and expressed his commitment to protect vulnerable classes. Fernandez also promised to use international reserves of the Central Bank to postpone payments on some of the debt to free up money to be used for social spending.
The president-elect’s next steps will be closely watched as he navigates the economic crisis. Fernandez is expected to focus on stabilizing the currency and inflation while boosting local consumption. At the same time, he must find an agreement with the creditors to restructure the debt. Any steps he takes will be critical for the future of Argentina and should bring a much needed relief to the nation as a whole.
