Argentina's Drastic Currency Devaluation and Shock Economic Measures: A Risky Gamble

Argentina's newly inaugurated President Javier Milei has implemented shock measures to address the country's economic crisis, including devaluing the peso by 54%, overhauling the crawling peg, and announcing massive spending cuts to eliminate the primary fiscal deficit. The government plans to slash spending equivalent to 2.9% of GDP, reduce energy and transport subsidies, and make cuts to social security and pensions. The International Monetary Fund (IMF) praised the government's actions, stating that they will help stabilize the economy and set the basis for sustainable growth.