About Argentina: Economic Crisis

Argentine Economic Crisis:

The Argentine economic depression was one of the most important events that have happened to the country in the past decades. The result was unemployment, riots, and the new era to new currencies. In the years of 1976 to 1983, which is also known as National Reorganization Process, the dictatorship government of Argentina caused significant economic problems. 

Everything started with the Falkands war which was essentially never ending. The unemployment rate was calculated to be around 18%. In July 1989, the inflation was about 200% per month and 5000% peaking for the year. During that time, the income of working class did not increase that much but on the other hand, the cost of everything including state-run utilities, gas, phone increased drastically. By the end of 1990s, other Latin American Countries such as Mexico and Brazil which were important trade partners for Argentina, l had their own economic problems.  This lead to mistrust in the regional economy. In 1999, Fernando de la Rúa which was the president of Argentina at that time faced the country with high unemployment rate and severe economic damage due to continued money borrowing. In 1999, Argentina’s GDP dropped by 4% and as the result, it forced the country to be in three year long recession.

The major reasons for economic recession are the creation of the fixed exchange rate between “Argentine peso” and the “US dollar” which was created at the start of 1990s. Second reason is the unnecessary money borrowing by Carlos Menem who was a former Argentine president at that time. Lastly and the most important reason is the increase in debt due to tax incomes.  All of these combined led Argentina to suffer for many years.  

Up until Independence Day:

• Argentine explored in 1516 and was developed under Spanish colonial rule
• British forced expelled in 1806
• Napoleon conquered Spain in 1808
• Argentinian set up their own government in 1810
• July 9, 1816 independence was official