Argentina's New President Faces Uphill Battle Against Inflation, Recession
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Argentina's new libertarian president Javier Milei faces huge economic challenges including 143% inflation, low reserves, and recession.
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Milei plans controversial shock therapy like closing the central bank and dollarizing the economy. Failure could mean a 10th debt default.
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Milei must correct distortions like parallel exchange rates up to twice the official rate and high interest rates choking credit.
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Low reserves threaten IMF and debt repayments. A devaluation seems likely to align official and parallel rates.
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Some positives a likely bumper harvest, new gas pipeline, lithium demand. But poverty already at 40% amid eroding incomes.