1/2/2023 - Economy and Finance

A pause for Argentina...

By lorena herrera

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Imagen de portada
Imagen de portada

Since then, these days have been of great joy and excitement for all football fans, especially for the Argentines when winning the World Cup.

This made me analyze the context in which the country was developed...

The economy of Argentina is one of the most interesting of several points of view, and I consider it worth deepening more in it.

Gross domestic product

We will then examine a number of numerical data used to analyze or describe any economic aspect. In particular, we will focus on Gross Domestic Product (GDP), which is a standard indicator of the performance of an economy. With this in mind, we will look at the following chart.

As can be seen in the graph, the Gross Domestic Product per capita is shown since 1960 until 2018. Although it is true that the impact of pandemic has not been taken into account, this chart gives us a more general view of the four countries that have reached the semifinals of the World 2022.

We note that Argentina is at an average interval compared to the other countries included, in addition to the remarkable growth it had in the 1990s. After that, it had strong falls and growths in a more volatile way than other countries.

Second Peter Pou, who played as a central banker during this period, Argentina's peak is due to structural reforms in its tax, financial and payment system, as well as financial regulations. However, controversy can be considered, especially considering the strong crisis that the country suffered between 1998 and 2002. Having present the previous chart, which can reflect a detailed story.

The crisis was serious: there was an increase in unemployment, the economy contracted 28% in a short time, there were protests, the government fell, the country violated its debts and the Argentine peso was strongly devastating.

Argentine peso

It is true that, despite being an economist, it is possible that you do not understand inflation as well as someone who lived in Argentina. The currency has always been an important theme in the history of the country. Currently, there is a high inflation worldwide, but one of the highest levels of this indicator in the world is precisely Argentina, with a 92% annually in 2022.

The country had difficulties with its currency because of the way it is managed and the monetary policies used. It is to understand that inflation is a phenomenon often difficult to control when expectations are anchored in a high number. That is, as people already think that inflation is going to be high, it acts as a result and meets. People in Argentina are not saving their money due to the concern that it might be worth less in the future. This behavior keeps prices high in a difficult cycle to break.

Anyway, the game was all a show. For the winning country of the World, there is a small prize: “The world football champion tends to enjoy 0.25% additional economic growth in the two quarters after the tournament,” according to a recent study by Marco Mello at Surrey University in the UK. This is because the country generates enough interest to increase its exports, and for Argentina, nothing bad a small relief.

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lorena herrera

lorena herrera

Hello, my name is Lorena, I am a Bachelor of Economics, obtaining training on capital management. Entrepreneur, reflective and interested in topics related to Financial Inclusion.

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