Analysis of the global challenges and economic situation in Argentina Essay

Analysis of the global challenges and economical situation in genus Argentina - Essay ExampleInflation As the economic activity in Argentina has expanded in 2010, there was a sudden increase in money generate which has resulted in increase the consumer prices. According to the Central swan of Argentina, the YoY increase in money supply during Feb 2011 increase by nearly 27.8%. This resulted in increased inflation figures for Argentina. As a result, the exporters of the commonwealth, chiefly in the manufacturing area are losing their competitive position in the market, driven by increase in domestic cost and relative stability in the exchange rates (Ken 2011). Beyond entrenched high inflation, the erosion of outer competitiveness during 2010-2011 is another thorny issue the next administration will have to face, which, if not mighty handled, could end up generating a crash- rather than soft-landing of the economy in 2012 - Alberto Ramos, Economist, Goldman Sachs, Mar 2011. As a result, Argentinas middle class suffered most due to high inflation, thereby affecting mobile phones, cable, petrol, wellness insurance premiums etc. in the month of Jan 2011 According to Argentinas national statistics agency Indec, the countrys annual inflation in was 10% by the end of Feb 2011 and 10.6% by Jan 2011. Inflation was primarily supported by increase in prices of tourism services, clothing and increase in prices of food and beverages. Also, jibe to EIU, the inflation was supported by the governments intervention in the agricultural sector which has resulted in the reduced production of important foodstuffs such as beef. Many local consulting companies in Argentina resist on these official inflation figures are they estimated the countrys inflation... This paper provides a thorough synopsis of the recent economic developments in Argentina. The essay aims to analyse the current economic environment in Argentina, including GDP, Inflation, industrial Production Index, agriculture, the countrys debt situation, foreign exchange rate, unemployment, Consumer ABS, Central Government revenue and expenditures.Argentinas GDP grew by 9.2% year-on-year through the quarter ended Dec 2010. The economys strong carrying into action was driven by domestic demand, with private consumption rising 11.5% year on year, up from 8.9% in the previous quarter. As the economic activity in Argentina has expanded in 2010, there was a sudden increase in money supply which has resulted in increasing the consumer prices. According to the Central Bank of Argentina, the YoY increase in money supply during Feb 2011 increased by nearly 27.8%. The country aims to impose heap barriers due to high imports. In 2010, Argentina reported 46% rise in its imports, to reach $56.4 billion. This was mainly due to heavy imports of intermediate goods used by automobile industry and capital goods industry. Argentina has stepped up trade barriers in terms of import duties or the range of produ cts.The government should remove growth obstacles by reducing import and export tariffs and moderating its stringent price control measures. This would result in increasing the trade activity with other countries. It would also result in increasing the investors confidence which would result in increased FDI and FII in the country