Argentina’s National Institute of Statistics and Censuses (INDEC) is set to today release monthly data on the country’s inflation rate.
INDEC is expected to announce a month-on-month Consumer Price Index increase of 3.6% for November, a drop from October’s rate of 3.8%. The announcement bodes well for the country, which has seen inflation climb since July. Argentina’s economy, like those of its regional neighbours, has struggled considerably under the COVID-19 global economic slowdown.
The country’s central bank is facing a shortage of dollars and the economy is expected to see a 10.9% contraction by the year’s end. Additionally, Buenos Aires remains entangled in ongoing negotiations with the International Monetary Fund (IMF) to restructure the $44 billion it owes after the collapse of a loan program last year.
Even with an end to the pandemic in sight, Argentina’s economy will not escape its now three-year recession absent significant structural reforms. These will need to include, at a minimum, a final resolution of the country’s debt woes with the IMF as well as an end to fiscally unsound spending to ease the country’s 13% unemployment and to provide support for nearly 2.5 million workers who have left the job market entirely.
Nick is the Director of the Daily Brief and a contributing Senior Analyst to it. An attorney, his areas of expertise include international law, international and domestic criminal law, security affairs in Europe and the Middle East, and human rights.