Argentina’s economy has entered a recession

Argentina is currently facing economic challenges, including a recession with over 200% inflation and increasing unemployment rates. The country’s GDP decreased by 2.6% in the first quarter of the year, marking the second consecutive quarter of contraction. This has led to a recession and a rise in unemployment to 7.7%.

President Javier Milei, who took office last December, has been implementing measures to address the economic situation. This includes reducing public spending and working towards a budget surplus. However, these measures have also led to the halt of infrastructure projects, further exacerbating unemployment in sectors like construction.

In addition to economic challenges, Argentina has a history of financial instability, with multiple debt defaults over the years. This has eroded the country’s image among global investors, leading to further economic struggles. Milei believes that the current measures are necessary to restore financial order and believes that the economy will eventually improve.

Despite efforts to stabilize the economy, Argentina’s GDP continues to decline, with a 5.1% drop compared to the same period last year. Consumption and public spending have also decreased significantly, while exports have seen a slight increase. The country is facing a difficult economic situation, but there is hope that the measures being implemented will lead to a turnaround in the future.