Argentina’s president received a congratulatory message from Elon Musk for reportedly balancing out the country’s budget and achieving a financial surplus in his first year of leadership. President Milei has also expressed his desire to make his country a central hub for artificial intelligence.
On his official X account, Tesla CEO Elon Musk expressed his delight at Argentina’s economic stabilization one year after President Javier Milei took office.
Musk and President-elect Donald Trump had high expectations for the country’s leader, as this was the first time a self-described “anarcho-capitalist” had been elected to the country’s highest office.
Wow, congratulations @JMilei 🇦🇷🇦🇷🇦🇷 https://t.co/XtuVMZnfAt
— Elon Musk (@elonmusk) December 11, 2024
Musk has publicly supported President Milei since he was elected. He also revealed that his companies, Tesla and Space X, were exploring ways to invest in Argentina.
According to a CNBC report, the Argentine President became the first foreign leader to visit U.S. President-elect Donald Trump following his second-term election victory. Milei attended a November gala dinner at Trump’s Mar-a-Lago resort in Florida, where he served as a VIP speaker.
During the event, Milei praised Trump’s re-election, describing it as “the greatest political comeback in all of history” and commending Trump for defying the political establishment despite personal risks. He reportedly remarked that Trump’s victory marked a positive shift for global freedom.
Milei also acknowledged Tesla and SpaceX CEO Elon Musk, who was in attendance, applauding Musk’s contributions to humanity. Speaking through an interpreter, he credited Musk for his efforts to “save humanity.”
Argentina’s economy improves under Milei
Argentina’s economy has undergone a dramatic turnaround under President Javier Milei, whose swift actions to balance the budget have reshaped the nation’s financial outlook. Inheriting a 5% GDP deficit, Milei achieved a financial surplus in the first quarter of his term and has maintained this trajectory.
The country has experienced budget deficits in 113 of the past 123 years. While spending cuts primarily targeting pensioners and public employees have sparked debate over their long-term sustainability, the speed of fiscal stabilization stands as Milei’s most notable achievement.
In a recent press briefing, Milei said that in 2023, a member of the previous administration he termed a “degenerate” printed 13% of GDP to win an election, which heightened inflation rates.
According to the president’s recent press statements, the abrupt end to money printing has bolstered the Argentine peso, reversing years of depreciation. Inflation, which soared to a world-leading 211% in 2023, has also plummeted. Monthly inflation rates dropped from 25% last December to 2.7% in October, the lowest figure since late 2021, marking a significant step toward economic stability.
Rent decontrol policies have nearly tripled the supply of apartments while reducing real prices by up to 40%. Additionally, the introduction of new satellite internet providers is expected to revolutionize agriculture by facilitating greater technological adoption.
Milei’s policies have inspired Elon Musk and Vivek Ramaswamy, co-heads of the US government spending control authority Department of Government Efficiency (Doge), who stated that they would use Argentina’s model to minimize the USA’s federal budget.
Argentine government vows to make the country an AI powerhouse
President Javier Milei is determined to transform Argentina into a major player in the artificial intelligence (AI) sector despite the country’s current position as one of the least advanced in AI adoption on the continent. Milei sees his nation’s abundant, low-cost electricity and its highly skilled workforce as key assets in achieving this ambitious goal.
“We have everything, everything, to become an AI powerhouse,” Milei stated, emphasizing the country’s potential to develop a thriving AI industry.
He highlighted Argentina’s capacity to meet the energy demands of data centers, which are crucial for AI development, pointing to the country’s reliable energy infrastructure.
Milei also echoed the importance of cold weather for data centers to function efficiently, suggesting that Argentina’s southern regions, with their vast land and cooler climate, could provide an ideal environment for this type of high-energy infrastructure.
During recent trips to the U.S., Milei met with high-profile tech leaders such as Mark Zuckerberg and Elon Musk, presenting Argentina as “practically the last truly liberal country in the world.”
According to Alexander Ditzend, president of Argentina’s AI Society, these meetings were part of Milei’s efforts to attract global investors to the country’s emerging AI sector.
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