Morgan Stanley Projects Credit Surge Following Milei's Election Victory in Argentina

Following Javier Mileis election victory in Argentina, Morgan Stanley anticipates a surge in credit availability, reversing recent declines in private sector lending.

• In September, credit in pesos to the private sector in Argentina saw a real monthly contraction of 1.8%, particularly affecting commercial and consumer loans.
• Morgan Stanleys analysis suggests that Mileis election will lead to increased credit availability, impacting economic growth and consumer spending in Argentina.
• The decline in private sector credit in Argentina highlights the challenges the new administration faces, as it seeks to stabilize the economy and stimulate growth.