Why is Argentina's economy in crisis? understand the situation
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The economic crisis in Argentina worsened the social index. Four out of ten citizens live below the poverty line. The political situation will only harm the country more. The Argentine peso is experiencing weeks of depreciation against the US dollar, so more and more citizens are suffering from the crisis.
Poverty in neighboring countries affects almost 38% of the population. The situation in the country has shaken society and increased tensions, mainly because Argentina has gone through a series of difficult years since the 2019 government.
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Argentine crisis
The currency – the Argentine peso – followed a difficult sequence of devaluation against the dollar due to the country's crisis. Some economists believe that the current economy is the result of fiscal imbalances that also lead to monetary imbalances.
Furthermore, domestic political disputes also caused great harm to the people. Without progress and current norms of social and economic growth and development, the nation's crisis seems far from over.
In this way, the political conflict manifests itself in external debt… and will only increase. Furthermore, inflation and unemployment are on the rise. Without a growth strategy, adversities in neighboring countries tend to increase.
We know that Argentina is currently a large debtor to the International Monetary Fund (IMF). Around 246 billion reais need to be returned. The country's biggest difficulty is adding a crisis to a structural issue that has persisted over the years.