In the upcoming months, intensified scrutiny centers on the economic trajectory of Argentina, driven by the proposed adjustment plan put forth by the recently inaugurated president, Javier Milei. The fledgling administration grapples with a troubled economic landscape, facing formidable challenges.

As we endeavor to summarize the complex dynamics of the Argentine economy into accessible charts, we aim to present a high-level overview of the situation. These visual aids serve not only to encapsulate the complexities of the challenges but also, when utilized through the CDMNext interactive platform, empower CEIC users to monitor developments through dynamic and interactive charts.

The multifaceted issues confronting the nation have been condensed into six categories: surging inflation, diminishing economic activity, a sharply depreciating currency, public finance concerns, dwindling international reserves, and the hurdles faced by struggling exports.

Skyrocketing inflation

The main challenge is to reverse the upward trend in inflation, which already stands at 142% in October 2023. Price volatility puts further pressure on a population where 40% is below the monetary poverty line. The central bank continues to raise the reference interest rate to curb inflation, protect investments in local currency, and slow the rapid devaluation of the Argentine peso in recent years.

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