Argentina's economy faces a complex array of challenges, characterized by a reliance on raw material exports and a struggling manufacturing sector due to historical import substitution policies. This economic structure has left the nation vulnerable to external shocks and persistent current account deficits. In response to these deep-seated issues, President Javier Milei, who took office in December 2023, introduced a radical economic reform package known as "shock therapy." This initiative aims to stabilize the economy through measures such as significant currency devaluation and governmental downsizing, alongside a restructured approach to both domestic and external debt management. As Argentina navigates these reforms, this brief explores the intricate interplay between the economy, the impact of Milei's policies, and the broader political dynamics at play, assessing whether these aggressive measures can ultimately steer Argentina toward sustained economic stability and growth.
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