Javier Milei's shock therapy policies push Argentina into a new recession

[Judi Lynn]

Jun 27, 2024 |
By Tim Wallace

Argentina fell into recession during the first quarter of the year amid Javier Milei’s push to overhaul the economy.
Drastic cuts to public spending led to Argentina’s GDP falling by 2.6% from January to March, which came after a 2.5% drop in the final three months of 2023.

This represents two successive quarters of negative growth, meeting the official definition of a recession. Since he was elected president last year Milei has sought to radically reshape the country’s troubled economy.

As a result of repeated bailouts Argentina is far and away the biggest debtor to the International Monetary Fund, while the country has also been hammered by runaway inflation.

Milei’s initial raft of shock therapy measures included devaluing the peso in December, as he slashed its official worth against the dollar by 50%.

He also called a halt to public infrastructure projects and cut the value of pensions and public sector wages, as he sought to stabilize the country’s finances and bring down price rises.

More:
https://cuencahighlife.com/javier-mileis-shock-therapy-policies-push-argentina-into-a-new-recession/

[SunSeeker]

1. My son was just down in Argentina and Uruguay and was shocked at how much everything cost.

Food, tea, just about everything he purchased while there cost much more than it does here in Southern California. I don't know how ordinary people are getting by down there.