Argentina's Peronists soar in election to seal run-off with radical Milei

Important Points

The surprising strength of Peronists despite inflation reaching triple digits in the country for the first since 1991 sets up a second round between two economic models that are polar opposites on November 19.

On Sunday, Argentina's ruling Peronist Coalition shattered expectations that it would win the country's elections. This set the stage for the polarized runoff vote between Economy Minister Sergio Massa (left) and radical libertarian Javier Milei (right).

Massa won 36.6%, Milei just over 30%. Patricia Bullrich, the conservative, was in the rear with 23.8%. Nearly 98% of votes were counted. This result defied the pre-election polls which predicted a libertarian victory.

The surprising strength of Peronists despite inflation reaching triple digits in the country for the first since 1991 sets up a second round between two economic models that are polar opposites on November 19.

It is true that the result of the election eases the concerns about a radical change in policy in the event Milei wins, who had proposed to dollarize the economy and close the central bank. However, it leaves the country with little answers for its worst economic crisis since two decades.

Argentines flocked to polls Sunday, amid economic woes as well as rising anger towards the traditional elite.

Massa told reporters after the election results: "I am aware that many people who voted for our party are also the ones suffering the most." "Our country faces a difficult, complex situation that is full of challenges. "I will not fail them."

Massa, a moderate, responded that social safety nets provided by the government and its subsidies were crucial for many Argentines who are struggling to make ends meet. He also showed a recent video showing how bus and train fares would rise dramatically if he won.

This message has certainly hit home.

"Peronism offers the opportunity for the poorest among us to have basic items at their fingertips," said Carlos Gutierrez 61 as he voted on Sunday.

Milei proposes radical measures, such as dollarizing our economy, and has criticised major trading partners China and Brazil. He is also in favor of cutting the size of government.

A candidate needed to win the election on Sunday with over 45% or 40% of the votes and a 10 point lead.

As a result of this, the markets will be jittery on Monday as they are left with no clarity regarding the future direction of the country.

"We've never seen such polarization," said Silvia Monto, 72, as she voted on Sunday in Buenos Aires.

"Sink us a little bit more"

Milei, who is fed up of rising prices and salaries, has promised to "chainsaw" economic and political status-quo.

Nicolas Mercado (22), a student from Buenos Aires, said: "He's the only person who knows the current situation and how to fix it."

In a defiant address after the results, Milei said that he would continue to fight for victory in the second round of the competition next month.

He said, "We face the most important elections in the last century." "If we work with each other, we can win. If we work with each other, we can restore our country."

The election authorities reported that the turnout at the general election was 74%. This is up from the primaries in August, but lower than the previous election, when 81% of voters participated.

The economy is on life support for the winner. Central bank reserves are depleted, a recession is predicted after a major dry spell, and a $44billion program with the International Monetary Fund is in a shaky state.

Silvana Dezilio said that it was difficult to predict a good outcome, whoever the winner.

"All governments make promises and then sink us even further. It's hard to believe, but our situation is getting worse. "We read that other countries are overcoming the problems we face every day, but for us they get worse." She said.