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Argentine industry reels from Milei's free-market revolution
Yahoo • • business
Key Points:
- Argentina's manufacturing sector is facing a severe decline under President Javier Milei's policies, with factories like Kioshi reducing output drastically due to increased foreign competition after the removal of import restrictions.
- The dismantling of protectionist measures in 2024 has led to a surge in imports, causing significant job losses and factory closures, with about 40% of industrial capacity idle as of June.
- While inflation has decreased due to reduced public spending, unemployment has risen sharply, becoming the primary concern for Argentines, with many displaced workers turning to informal jobs such as delivery app driving.
- Government officials defend the policy shift as necessary for long-term economic growth, citing "creative destruction," but industrialists highlight challenges like an overvalued peso, high taxes, and interest rates that hinder competitiveness.
- Small businesses, such as a musical instrument string manufacturer, are also struggling with reduced demand and job insecurity, reflecting widespread anxiety among workers about the sector's future.
