As the new President of Argentina, Javier Milei faces extreme challenges with highly uncertain outcomes. Despite his strong measures during the campaign, which could potentially address the stark imbalances currently paralyzing Argentina’s economic activity, these measures would cause an abrupt and deep economic adjustment, collapsing domestic demand and threatening financial stability. The credit agency Moody’s Investors Service focused on the consensus necessary to carry out the proposed reforms and on governance risks.

Meanwhile, investment banking JP Morgan also placed its magnifying glass on the risks of implementing the measures announced by Javier Milei during his campaign. The bank warned that governance risks loom given the lack of party structure and also the distribution of power in Congress after the elections. The main challenge for Milei is that it may be hampered by political maneuvering.

The British entity Barclays also focused on governance and warned that for Milei, the biggest challenges will come from the social front. The faster he is able to achieve stabilization and a strong economic recovery, the greater the chances that a virtuous circle of reforms will develop.