'People are going to suffer': Argentines grapple with austerity shock


  • World
  • Thursday, 14 Dec 2023

A woman buys fruits and vegetables at a greengrocery store in Buenos Aires, Argentina, December 12, 2023. REUTERS/Tomas Cuesta

BUENOS AIRES (Reuters) - On the streets of Buenos Aires, Argentines were starting to grapple on Wednesday with how they will be impacted by major austerity measures and an over 50% devaluation of the local peso currency, part of a shock plan to stabilize the economy.

The government of new libertarian President Javier Milei unveiled plans on Tuesday to slash state spending and turn around a deep fiscal deficit, moves that were cheered by markets. It devalued the peso currency sharply, which will stoke inflation already near 150%.

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