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Argentina: Javier Milei’s new government announces a series of austerity measures
Argentina’s new president Javier Milei is launching a shock treatment for his country’s economy. On Tuesday, December 12, its Minister of the Economy announced a series of austerity measures intended to curb the record inflation hitting Argentina in the long term. – (franceinfo)
Argentina’s new president Javier Milei is launching a shock treatment for his country’s economy. On Tuesday, December 12, its Minister of the Economy announced a series of austerity measures intended to curb the record inflation hitting Argentina in the long term.
This was one of Javier Milei’s campaign promises during the Argentine presidential election. Two days after his inauguration, his Minister of Economy, Luis Caputoannounced on Tuesday, December 12, a series of new measures to administer shock therapy to the Argentine economy: reduction of energy and transport subsidies, cancellation of public contracts… So many measures intended to curb the long-term term the record inflation which is hitting the country: almost 143% in one year.
The IMF welcomes the measures announced
In the streets of the capital, Buenos Aires, the announcement that provoked the most reaction was the devaluation of more than half of the national currency, the peso. In a country where 40% of the population is below the poverty line, this will affect the purchasing power of Argentines. THE Monetary fund International Fund (IMF), Buenos Aires’ main donor, welcomed the austerity measures announced by the new Argentine government.
