"Argentina's President Milei: Brace for an Economic Shock"

Argentina's newly-elected president, Javier Milei, warned the country to brace for a painful fiscal shock as he aims to tackle high inflation and steer the economy away from its sixth recession in a decade. Milei emphasized the need for aggressive fiscal cuts, stating that there is no alternative to a shock adjustment due to the lack of funds. He plans to make cuts equivalent to around 5% of Argentina's GDP, primarily affecting the state rather than the private sector. While Milei previously advocated for dollarization, he did not mention it in his inaugural speech, indicating a potential shift in his stance.