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Case
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Reference no. 224-0006-1
Published by: Amity Research Centers
Published in: 2024

Abstract

Argentina, one of the major countries in South America, was the third-largest economy in Latin America, as of January 2023. The economy was primarily dominated by manufacturing and service sectors. Besides, in terms of agricultural products, Argentina was regarded as one of the world's main producers of vegetables, fruits, oilseed crops such as sunflowers and soybeans, and industrial crops like sugarcane and cotton. During the early decades of the 20th century, Argentina had become the world's leading exporter of meat, flax, and corn as well. Despite having a prosperous economy, Argentina had been facing severe economic crisis over the years. The main reason behind Argentina's economic crisis was the soaring inflation. In addition, other factors including excessive printing of its currency (Argentine Peso), the bailouts of International Monetary Fund (IMF) and the sale of Government bonds to pay off employees' salaries had ultimately fuelled the economic crisis. To counter the challenges, in December 2023, Argentina had officially declared a sharp devaluation of Argentine Peso, and simultaneously reduced energy and transportation subsidies, as part of shock adjustments. In this backdrop, would the Argentine economy be able to flourish in the future, overcoming the challenges?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
Americas
Country:
Argentina

About

Abstract

Argentina, one of the major countries in South America, was the third-largest economy in Latin America, as of January 2023. The economy was primarily dominated by manufacturing and service sectors. Besides, in terms of agricultural products, Argentina was regarded as one of the world's main producers of vegetables, fruits, oilseed crops such as sunflowers and soybeans, and industrial crops like sugarcane and cotton. During the early decades of the 20th century, Argentina had become the world's leading exporter of meat, flax, and corn as well. Despite having a prosperous economy, Argentina had been facing severe economic crisis over the years. The main reason behind Argentina's economic crisis was the soaring inflation. In addition, other factors including excessive printing of its currency (Argentine Peso), the bailouts of International Monetary Fund (IMF) and the sale of Government bonds to pay off employees' salaries had ultimately fuelled the economic crisis. To counter the challenges, in December 2023, Argentina had officially declared a sharp devaluation of Argentine Peso, and simultaneously reduced energy and transportation subsidies, as part of shock adjustments. In this backdrop, would the Argentine economy be able to flourish in the future, overcoming the challenges?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
Americas
Country:
Argentina

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