Milei’s ‘shock’: a financial “success” and a hard blow to Argentina’s real economy

Milei’s ‘shock’: a financial “success” and a hard blow to Argentina’s real economy

The unprecedented ‘shock’ plan launched without anesthesia by the libertarian Javier Milei has meant a severe economic adjustment, with a “successful” result in the public accounts, but at the cost of drastic spending cuts and paralysis of activity, a harsh scenario for an impoverished Argentina burdened by very high inflation.

The fiscal imbalance, along with the very high inflation -211.4% in 2023, the highest rate in the world- and the monetary and exchange problems, are the greatest burdens with which Milei took the reins of the battered Argentine economy 100 days ago.

The libertarian economist assumed the Argentine Presidency on December 10 and, without delay, undertook a severe adjustment plan equivalent to 5% of GDP – something of which “there are no historical records in the world,” according to Milei – with the aim of recover the surplus this year, from a primary deficit of 29% of GDP and a negative financial result of 6.1% of GDP in 2023.

Kumneger Media
Kumneger Media
Kumneger Media is a News and Entertainment Website & Channel. Kumneger Media in addition to News and Entertainment it is the hub of Politics, Movies, Drama, Music, Comedy, Documentary and More!