Explainer-What does Argentina's 'shock therapy' economic package involve?


  • World
  • Thursday, 14 Dec 2023

Argentina's President Javier Milei waves as he attends a Hanukkah celebration in Buenos Aires, Argentina, December 12, 2023. REUTERS/Tomas Cuesta/ File Photo

(Reuters) - Argentina's government under libertarian President Javier Milei has unveiled a "shock therapy" economic plan, a radical and likely painful blueprint to stabilize the South American country's economy which faces its worst crisis in decades.

The plan included a devaluation of the peso currency by more than 50%, which took effect on Wednesday, as well as wide-ranging measures for cutting state spending. The austerity moves have been cheered by markets but will likely hurt Argentines.

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