As Argentina continues to experience triple-digit hyperinflation and continued economic deterioration, sovereign bonds plunged last Monday in response to the most recent election results. Following Sunday’s vote, Peronist party presidential candidate Sergio Massa was seven points ahead of Javier Milei. In response, The Economist called it “the worst of all possible outcomes” as Argentina’s equity market experienced a selloff due to Massa’s prior track record as Economy Minister. While many Argentinians continue to struggle with daily life, the country’s voter turnout has been the lowest since Argentina’s return to democracy in 1983.
On Nov. 19 voters will either choose Massa, despite the economic deterioration that took place on his watch, or place their hopes in a self-described anarcho-capitalist who promises a drastic shake-up of South America’s second-largest economy.
Milei’s fiery rhetoric and radical proposals — like slashing subsidies that benefit a large swath of the population and replacing the local currency with the dollar — galvanized die-hard supporters, but cost him support among more moderate voters.Source: AP News “After presidential race surprise, Argentine economy minister and right-wing populist look to runoff “- https://apnews.com/article/argentina-election-milei-massa-vote-runoff-a603b4e3edf851cc47d0117738173b35
Argentina’s future remains in the balance as long as current policies remain; the question is whether or not the alternatives offer any better option. Perhaps this might explain the relatively poor voter turnout.