• Sun. Apr 21st, 2024

Argentina’s new President takes drastic measures to stabilize economy, but at what cost?

BySamantha Nguyen

Apr 3, 2024
4 Major Obstacles Ahead for Milei’s Economic Overhaul in Argentina

Since taking office on December 10th, Argentina’s new President Javier Milei has implemented drastic measures to stabilize the country’s struggling economy. During his campaign, he warned voters that his “shock therapy” approach would be painful, and this prediction has proven true. Since then, consumer price inflation has accelerated significantly. Through February, prices have risen 71% and 276% from a year earlier. This surge in prices can be attributed to Milei’s decision to scrap price controls, devalue the currency, and cut subsidies that previously kept transportation and utility bills affordable.

While Wall Street investors have reacted positively to Milei’s reforms and pushed Argentina bond prices higher, the general population has been hit hard by the economic consequences. Consumer spending has plummeted as inflation erodes wages and pension payments. As a result, Argentina has now entered its sixth recession in the past decade. Despite this, Milei defends his aggressive approach by stating that it is necessary to undo the damage caused by his predecessors. He places blame on them for the country’s poverty rate, which is now nearing 42%, a significant increase from 26% in 2017 and just below the peak experienced during the Covid-19 pandemic.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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