Monday, 30 November 2020

Argentina’s Economy Continues to Spiral Downwards

Argentina's economy continues on a spiral downwards with no end in sight.

Poverty in Argentina is currently at 36% from around 26% in 2018. The numbers are alarming, as inflation currently stands at 45% and is expected to increase within this year.

A crowd toured the streets of the entire center of Buenos Aires in repudiation of the official economic policy and in demand of a model based on production, industry and work. Photo from Pagina 12

The massive International Monetary Fund (IMF) loan came with strict conditions, Argentina is required to commit to a strict zero-deficit budget for 2019 and has to curb the actions of its Central Bank. The measures have increased poverty levels by ten percent, while austerity has hurt those on the bottom the most.

- Advertisement -

Protests have become a common sight across the country.

On Thursday, thousands of people took to the streets in Buenos Aires to protest against the most recent austerity measures that were approved by President Mauricio Macri. Protesters were joined by unions, small business owners and various activists from every part of the country.

Subsidy cuts for utilities such as electricity have made life harder for the regular Argentinian, while the country’s economy suffers from high-interest rates, a weak peso and rising inflation. The results have been an increase in poverty, now one in three Argentines lives below the poverty line and homelessness increases steadily.

- Advertisement -

Extreme poverty in the capital alone, is estimated to affect around 198,000 people.

The IMF estimated Argentina’s economy fell by 2.6% in 2018 and will drop another 1.6% in 2019, yet believe there are “good prospects for a gradual recovery.”

According to a local media outlet, Pagina 12, opposition party members have said that if they win in next October’s presidential elections they will renegotiate the US$56.3 billion deal, which is the biggest loan in IMF’s history.

 

- Advertisement -
Q24N
Q24N is an aggregator of news for Latin America. Reports from Mexico to the tip of Chile and Caribbean are sourced for our readers to find all their Latin America news in one place.

Related Articles

State of the Nation report: “The situation was already fragile before the pandemic.”

QCOSTARICA - The evidence collected by the Programa Estado de la...

Distrust of sectors complicate signing an agreement with the IMF this year

QCOSTARICA - Reaching a structural adjustment agreement with the International Monetary...

MOST READ

Western Union closes in Cuba due to U.S. sanctions

(Q24N) The financial services company Western Union closed its operation in Cuba, this Monday, November 23, forced by pressure from the Donald Trump administration,...

PAHO urges countries not to require covid-19 tests from travelers

QCOSTARICA - The Pan American Health Organization (PAHO) urged countries not to require covid-19 tests from travelers, insisting that they give a 'false sense...

Covid-19 in Costa Rica: 895 new cases and 21 deaths for Tuesday, November 24

QCOSTARICA -  The director of Health reported Tuesday 895 new cases of Covid-19 in the country, bringing the total to 133,190: 64,650 women and 68,540...

chorotega Region promotes campaign to promote mental health and prevent suicidal behavior in times of COVID-19

QCOSTARICA - Product of the joint work of the Ministry of Health (through the Health Governing Area of ​​La Cruz), Universidad Estatal a Distancia...

Woman charged clients ¢35,000 for having sex with young women

QCOSTARICA - A woman, surnamed Castillo Castro, allegedly charged male clients ¢35,000 for having sex with young women between 18 and 24 years old...

Costa Rican Betcris is Becoming the MLB Official Wagering Partner 

Major League Baseball (MLB) took a giant stride forward in its outreach to Latin American countries by signing Betcris, the sportsbook based out of...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.