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OECD Warns Milei’s Radical Liberalization Puts Argentina’s Industry at Risk

The Paris-based body says recent fiscal tightening, paired with a halt to monetary financing, drove a marked drop in inflation since 2024.

Overview

  • The warning appears in the OECD’s Latin America outlook published Friday, which assesses Argentina’s post-2023 policy overhaul.
  • The report characterizes the “chainsaw plan” as a radical liberalization strategy that does not fit a traditional productive development plan.
  • OECD analysts cite primary budget surpluses in most months of 2024 following discretionary cuts to capital spending.
  • The assessment highlights labor-market changes, streamlined business rules, lower trade barriers and incentives for private investment.
  • The organization flags major implementation challenges and cautions that Argentina’s long-built industrial capabilities could be weakened rather than strengthened.