Human Rights Watch
Focus Economics
Argentina's Economy: Protests Highlight Decades-Long Crisis
Political Failure Blamed for Public Outcry
Buenos Aires, Argentina (July 24, 2024) - In the wake of anti-government protests that have paralyzed downtown Buenos Aires, analysts attribute the public's rage to decades of economic turmoil and political inaction.
Economic Recession Sparks Unrest
Argentina has entered a recession in the first quarter of 2024, largely due to President Javier Milei's drastic spending cuts. The cuts have led to near 20% decline in retail sales compared to the same period last year, comparable to the decline seen during the 2018-2019 economic crisis.
Fiscal Surplus Amid Public Suffering
Despite the economic downturn, analysts were surprised by the government's announcement of the first budget surplus in 12 years at the start of 2024. However, the quick reduction in public spending has resulted in a fiscal deficit, highlighting the challenges facing the economy.
Economic Plateau Predicted
Analysts predict that Argentina's battered economy is likely to remain stable with fluctuating recovery in the second half of the year. However, the inherited economic and social crisis by President Javier Milei remains a significant challenge.
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