The Economic Devastation of COVID-19: A Bleak Outlook for Argentina
Argentina Faces Devastating Economic Impact of COVID-19
Economic Impact of COVID-19 in Argentina
Buenos Aires - Feb 27, 2021 - 1830 ACTUALIZADO. WEB
The global economic devastation that has accompanied COVID-19 has been particularly bleak in Argentina, one of the Latin American countries hardest hit by the pandemic's economic fallout.
The country's economy, which was already struggling before the pandemic, has been ravaged by the virus. Argentina's gross domestic product (GDP) contracted by 9.9% in 2020, one of the worst performances in the region. The country's unemployment rate has also soared to 13.1%, the highest level in a decade.
The pandemic has also had a devastating impact on Argentina's fiscal situation. The government's budget deficit is expected to reach 10% of GDP in 2021, the highest level in history. The country's external debt has also increased significantly, reaching $250 billion, or 90% of GDP.
The Argentine government has taken some steps to address the economic crisis, including increasing spending on social programs and providing loans to businesses. However, these measures have been largely insufficient, and the country's economic outlook remains bleak.
The IMF has projected that Argentina's economy will grow by just 2.5% in 2021, well below the regional average. The country's high inflation rate, which is currently running at over 50%, is also expected to continue to erode consumers' purchasing power.
The economic devastation of COVID-19 has left Argentina in a vulnerable position. The country's economy is struggling, its fiscal situation is dire, and its external debt is unsustainable. The government must take urgent action to address these challenges and prevent the economic crisis from worsening.
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