Economists have warned Argentina may enter a period of hyperinflation following its October election, after populist economy minister Sergio Massa launched a spending spree and frontrunner Javier Milei pledged to dollarise the economy.
Argentina’s senate on Thursday will vote on a proposal by Massa — who is also the presidential candidate for the ruling Peronist movement — to scrap income tax for all but a fraction of registered workers, the latest in a series of measures aiming to put money in voters’ pockets.
In a flurry of announcements before Wednesday, the date from which Argentina bans vote-seeking acts by government, Massa unveiled new cash handouts worth roughly $80 for registered workers, $125 for informal workers, and $49 for retirees, and announced a scheme to reimburse many consumers for value added tax on basic goods.