Economic activity was devastated in Argentina during the fateful year of 2020. Official data records a 10% contraction, the largest decrease on the continent alongside Peru, if the Venezuelan catastrophe is not taken into account. In 2002, when Argentina collapsed, the fall was only slightly worse at 10.9%. Inflation is high (38.5% over the last 12 months and picking up), the peso continues to devalue, Central Bank reserves stand at less than $3 billion and four out of every 10 Argentines live below the poverty line. The macroeconomic outlook is alarming.
Argentina, though, is accustomed to bankruptcy and recovery. And to relative decline. Since 1921, when it was one of the richest countries in the world (GDP per capita at that time was on a par with France and Germany), Argentina has experienced average annual inflation of 105% and has been obliged to change its currency on five occasions: the
Dr Néstor Castañeda interview by El País on Argentina s Crisis ucl.ac.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ucl.ac.uk Daily Mail and Mail on Sunday newspapers.