Argentina in Economic Crisis Again: IMF, Friend or Foe?

*Talk will begin after 6:30; starting at 6 so we have time to enjoy happy hour prices on good Argentinian wine and bites beforehand*

Argentina is dealing with yet another economic crisis that could cause the second-largest economy in South America to default, and the future doesn’t look any brighter…

Last September, President Mauricio Macri requested an early release of the biggest loan ever granted from the IMF in order to reactivate the economy; a very unpopular move among the Argentinian public who hold the international organization in a negative light, blaming it for the 2001 economic crisis that led many middle-class citizens into poverty.

In the past several months, in a series of unfortunate events, the overvalued Argentinian peso has dropped to over 50% against the US Dollar (making their large debts even larger), interest rates have risen to 60% (the largest in the world), and inflation is expected to reach 45% by the end of the year.

The budget for the year 2019 is being discussed in the Argentinian congress. It is an austere budget that anticipates a strong recession for this year and a moderate one for the next with more inflation and devaluation of the Argentine peso; worrying facts, not only for citizens, but also for the government coalition as 2019 is a Presidential elections year.

Will the coalition be able to get the re-election?

What will happen to the Argentinian economy in near future?

Photo Credit: Wall Street Journal