The Argentine president, Javier Milei, announced this Friday the creation of an ‘Argentine Nuclear Plan’, with technology from the South American country and the support of the International Atomic Energy Agency (IAEA), in order to supply the development of artificial intelligence ( AI), which demands more and more energy.
“After decades of decline, Nuclear energy will have its triumphant return and not only are we not going to be left behind, but we intend to be pioneers.”Milei said in a recorded speech, surrounded by his chief advisor and the person responsible for the new Argentine nuclear plan, Demian Reidel, and the Director General of the IAEA, the Argentine Rafael Grossi.
Reidel explained that it is a “ambitious plan that marks the rebirth of nuclear energy as the cornerstone of the Argentine and global energy future”, because “in a global context in which AI and technological advances demand more and more energy, nuclear energy once again occupies its rightful place. It is a clean, secure and, most importantly, scalable source.”
Milei’s advisor assured that Argentina “is prepared to lead this energy evolution” and that “it will do so with 100% Argentine technology”, developed by nuclear engineers from the South American country.“who are recognized among the best in the world”for which he stated that this project “is a national pride.”
Argentina has three nuclear power plants
Milei’s Government will create the Argentine Nuclear Councilchaired by Reidel and made up of the Chief of Staff, Guillermo Francos; the Minister of Defense, Luis Petri; and the president of the National Atomic Energy Commission, Germán Guido Lavalle.
In a first stage, a small modular reactor (SMR) will be built – an Argentine invention that offers flexibility, lower initial costs and the possibility of being installed in diverse locations– on the premises of the Atucha Nuclear Power Plant.
In a second stage, uranium reserves will be developed that Argentina has, which will serve to cover domestic demand and is expected to position the country as an exporter of fuel elements with high added value.
The Argentine nuclear plan has the support of the IAEA, and Grossi described that internationally there is “a very clear return to the use of nuclear energy as a source of clean, dispatchable, reliable energy, at a time when there is a growing need for energy and problems of a geostrategic nature.”
With this plan, Argentina seeks to position itself as a “global leader in the peaceful use of atomic energyas it moves towards its goal of becoming an AI hub,” Reidel said.
The Milei Government is interested in AI is developed in Argentine territory taking advantage of the large areas of land and the cold climate of Patagonia, but this Friday the Argentine president recognized that “the development potential in AI is so immense that conventional energy will not be enough to supply this new demand.”
Argentina and Haiti, the only Latam economies in recession in 2024
Argentina and Haiti will be the only two countries of Latin America whose economies will have a negative performance at the end of 2024with falls in the Gross Domestic Product (GDP) of 3.2% and 4%, respectively, according to estimates by the Economic Commission for Latin America and the Caribbean (ECLAC).
This week the organization has worsened the forecast for Haiti, from the 3% drop it predicted in August to the 4% contraction it calculated this week. On the contrary, it has slightly improved its forecast for Argentina by four tenths, where a recession of 3.2% is now expected.
Both countries will repeat among the failures in the region, since last year they already experienced drops in their economy of 3.6% for Argentina and 3% in the case of Haiti. Added to these is Peru, which, in 2024, will be able to turn around its economic performance.
Specifically, Peru will manage to grow by 3.1%, which is five tenths more than expected by ECLAC at the beginning of August. This figure contrasts greatly with the 0.6% drop that the country faced in 2023.
Mixed performance in South America
All South American countries, except Argentina, will see their economies grow this year, although with uneven behavior. So, At the bottom of the table is Ecuador in first place, which will only grow by 0.8%. The Ecuadorian nation reached 2.4% in 2023 and ECLAC has decided in its latest review to cut its estimates by one percentage point, compared to 1.8% in August.
Colombia and Bolivia will not exceed 2% GDP growth this year (standing at 1.8 and 1.7%, respectively). In the case of Colombia, its economy will perform better than previously expected by ECLAC, with an upward revision of five tenths.
Paraguay will repeat above 4% again, reaching up to 4.2% expansion of its GDP. Uruguay, for its part, will manage to expand its economy by 3.1%, compared to the small increase of 0.4% that the South American nation experienced in 2023. In its case, ECLAC has revised its forecasts downwards.
Chile will be located in the middle of the table, and will manage to reach 2.3%. However, this performance is lower than what ECLAC expected in the middle of the year, specifically by three tenths.
Meanwhile, given the surprising and positive GDP result in the third quarter of the year, ECLAC has agreed with other organizations and has decided to significantly increase the expected performance of Brazil’s economy for this year, from 2.3% to 3.2%.
Finally, Mexico’s growth will be notably lower than last year, when it reached 3.2%. In 2024, Mexican GDP will expand by 1.4% (five tenths less than expected in August).
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