Almost 40% of Argentinians younger than 20 years live below the poverty line. That's according to the new bulletin on the current trends in the global economy devoted to the situation in Argentina that the Analytical Center has published.
Argentina is an economic leader in Latin America and the Caribbean and according to the World Bank, in 2018 it became a high per capita income nation, the experts note. After the biggest default in world history in 2001, the socio-economic situation in the country stabilized by 2007 thanks to a favorable situation in the global markets. However, the unbalanced reforms being implemented by the country's government as well as the decline in price for the country's key exports resulted in a very uneven economic growth, rising inflation and the devaluation of the national currency.
Despite numerous attempts by the country's government to implement reforms, a high budget deficit, high inflation, declining productivity and competitiveness, low level of education and weak institutions have prevented the country from achieving sustained economic growth, the experts write.
Argentina has roughly the same level of social inequality as Russia. In recent years the gap between the rich and the poor started growing sharply, even as the country went through one economic crisis after another, which in theory should reduce social inequality. About a third of the country's population are poor and 40% of those under the age of 20 also live below the poverty line.
In the 11 months of 2018 the country's national currency lost more than 50% of its value and still remains a major drive of inflation which reached 45.5% on an annualized basis in 2018. On average, since the second week of November, the key interest rate was 65.3% after averaging 71.8% in October 2018 and 26.3% in 2017. In 2018 International Monetary fund gave preliminary approval to the issuance of an additional loan to Argentina (USD 50 billion) as part of an aid package to stabilize the economic situation and prevent a possible default.
For more see the bulletin on the socio-economic development of Argentina.
Other bulletins on the current trends in the global economy can be found in Publications.