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An impressive economic feat: Argentina recorded its lowest country risk in years and saw the Argentine peso shine on the global market. Could this be the beginning of a new era for the neighboring country's economy? Meanwhile, Brazilians are wondering how Argentina's recovery could impact Brazil.
While many countries struggle to stabilize their economies, one South American neighbor attracted attention by achieving a surprising economic feat.
This unprecedented achievement has rekindled hopes and sparked debate across the continent. But what is the secret behind this impressive turnaround?
Last Monday, January 6th, Argentina registered a historic milestone: country risk, measured by the American bank JP Morgan, fell to less than 600 points.
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This was the first time the index had reached such a low level since 2018, when the country was still under the leadership of former President Mauricio Macri.
The index reflects investors' perception of the country's ability to honor its debts, and the drop signals an increase in confidence in the Argentine financial market.
Argentine Peso: The Best Currency in the World in 2024
Another impressive piece of data came in December 2024, when consultancy GMA Capital classified the Argentine peso as the “best currency in the world”.
The currency appreciated by 44% in real terms in the year, consolidating itself as a symbol of economic recovery amid a turbulent global scenario.
This performance has put Argentina on the radar of international investors who, until recently, avoided the country due to recurring crises.
Although the advances are undeniable, many experts warn that the context is not so simple.
The Argentine economy still faces major challenges, such as high inflation and difficulties in controlling public spending.
However, positive signs show that well-targeted policies can generate significant results, even in crisis situations.
The impact of country risk
The drop in country risk is significant because it directly affects the cost of international loans.
With a lower index, Argentina can obtain financing with lower interest rates, which is essential for a country seeking to balance its public accounts and stimulate economic growth.
Furthermore, this reduction attracts external investors, interested in exploring the opportunities of a market that is showing signs of recovery.
Still, the increase in country risk and the appreciation of the peso represent signs that economic policies can, in fact, reverse severe crises.
For investors, the drop in country risk is seen as an indication of greater security in investing resources in the country.
However, long-term success will depend on continued consistent economic measures.
The role of economic policies
Experts believe that the success of the peso and the drop in country risk may be linked to stricter policies adopted by the Argentine government, which sought greater control over public accounts and implemented measures aimed at increasing the confidence of international investors.
Even with a challenging domestic scenario, the government managed to attract positive attention from the global financial market.
Additionally, the influence of strategic sectors such as agribusiness and commodity exports helped to strengthen the economy at critical times.
This combination of factors has contributed to the current perception of improved economic stability.
A milestone since 2018
The last time Argentina's country risk was so low was during Mauricio Macri's government in 2018.
Since then, the country has faced a series of economic crises that have raised the index to worrying levels.
Therefore, The drop to below 600 points is, in fact, a milestone that puts the Argentine economy back on the radar of international investors.
This achievement, however, comes with challenges.
The high demand for credit, the external debt and controlling inflation are still issues that could hinder the sustainability of these advances.
Reflections in Latin America
Argentina’s economic recovery is not only good news for the country, but also for Latin America as a whole.
If the Argentine economy continues to strengthen, neighboring countries could benefit from increased exports and trade partnerships.
For Brazil, Argentina's main trading partner, the economic stability of its neighbor is essential to ensure a healthy flow of bilateral business.
Agentina: an example of overcoming?
Recent results show that, even amid a long history of instability, significant progress can be made.
However, analysts emphasize that it is necessary to closely monitor the evolution of economic policies to ensure that progress is not just temporary.
What do you think?
Will Argentina be able to sustain this economic recovery in the coming years? Or could internal and external challenges reverse the positive scenario? Leave your opinion in the comments!
At the cost of 52% of the population, below the poverty line, of every 10 children, 3 barely eat one meal a day, the country of barbecue is over, the population only eats chicken and pasta, wages do not keep up with inflation, prices are twice as high as in Brazil. 12000 small businesses have closed. The new labor laws only benefit businessmen. There is no investment in infrastructure and the country's growth. Education and health are only for those who have money. Research areas are at a standstill. But the market likes it, the people can go to hell.
The guy stays in power for 1 year and receives decades of blame from the left? That's an interesting thought.
No friend, this is the logic of neoliberalism, cutting the population and increasing wealth for the elite. A country that is already in **** got worse with Millei, at least for the poor.
What did you want? Hahaha to continue with the same recipe? Hahahaha each one
To see how easy it is to fool everyone.
Milei received in January 24 a total of 59,7% in poverty. In July 24 it dropped to 52%. The same % that was in December 23. In other words, it only maintained or improved very little.
Now in December 22 the poverty rate was less than 6%. In other words, in just over a year the former president finished destroying Argentina.
Then people who don't look at numbers and only read news headlines fall for this nonsense.
59,7 in poverty. Now it's 52,0 below the poverty line. Want me to draw it?
You think they are poor there, I went there last month, Argentina has always been and continues to be above Brazil even in crisis…, Germany is in crisis too, have you read that? Do you think that the crisis for them is equivalent to the crisis in Brazil? Brazil has been a pigsty since its conception, get informed by traveling and having contact with reality, and also observe and learn instead of playing the role of an envious loser.
“Bro,” learn one thing: Peronists are not left-wing. Perón was a ****, a populist, a far-right dictator. Evita was a slut who loved jewelry and designer dresses. It’s a shame that schools don’t teach the bloody truths of Latin America, I mean, Latin America.
You are absolutely right, this rotten left that only knows how to criticize should take this as an example for this shitty country, tomorrow they will all make a L of ****.
I don't think you understand, all of this happened in his one year in government. He destroyed Argentina to please the business community outside the country.
You are very wise, I admire your intelligence in realizing that he destroyed Argentina in the last year. And that previously it was a prosperous and rich country without poverty governed by capable and competent people. Congratulations.
**** biting with envy. He talks as if he had finished off Argentina.
Get out of ****, if you want to get out of **** you have to save money, first sort out your finances and then help someone else.
If the currency appreciated 40%, great! Those who had some change in their pockets are better off.
While our stock market is struggling, theirs has increased by 114%, investments in jobs that used to come here are now going there!
And think they are wrong? Do the
“L” and fatten your ****, maybe it will be your diet in the future.
In short: The Milei government excluded 60% of the population from its project and governs to stabilize an economy that will serve the other 40% and, for this group, will privilege a small percentage, creating conditions to increase income concentration. I fear that the end result will be a gigantic social upheaval.
I saw an Argentine TV program that said middle class people only have one solid meal a day. A cheesecake with coffee costs R$1. I saw a fan talking about it on TV. I'm not jealous.
Hahaha, I lived in Argentina for 15 years and I still have a sister living there. What you say is completely out of touch with reality. Being poor for an Argentinean is like being middle class in Brazil... no one lives in a back house there! Hahaha, that poverty is one of the biggest lies there. If you judge like that, 95% of Brazil is in poverty. STOP BEING JEALOUS LOL
I liked it, and we have to recognize that the main tool for Argentine success is the CHAINSAW!
Cut costs and steal, done!
Funny, Brazil came from a hyperinflation of 2477% per year in 1993 and Argentina in 2023 registered 140% per year. We did not sell the country and it took +/- 3 years to stabilize at 3%. As the Brazilian invents itself, we created a new currency and devalued it without resorting to external currencies. Some countries copied us after 1997/98 and evolved. I want to see them play at 3% like we did, and detail “we did not sell our country” 😉
You forgot that Milei is in her first year of possession.
I suggest looking at the evolution of economies like Singapore.
It is quite possible that when he finishes his first term, Argentina will have a better economy than Brazil will end up with. And if they manage to achieve 16 years of this model, it is very likely that they will attract investment to become a service hub with a strong currency.
First, Brazil is still the 9th largest economy in the world, even in 2025. Comparing Singapore's economy with Brazil, seriously? Since you like Milei, I partly agree with privatization, but not the entire country. We privatized some parts and that before and it worked, if we privatize everything, what will be left for us?! Another thing, you mentioned 16 years for recovery, Brazil can't wait that long to recover. 😉
But things that are public are no longer ours, both public and private things have to pay at one time or another.
“OUR THINGS”????
AND THE “STATE”, WHICH IS THE POLITICIANS AND THE UNION CORPORATIONS OF THE “ADMINISTRATIVE MACHINE” THAT SABOTAGES THOSE WHO WANT TO REDUCE THE STATE’S INTERFERENCE IN OUR LIVES.
THEY ALWAYS TRY TO EXPAND THEIR “DOMINANCE” OVER COMMON PEOPLE!
Jesus is pure ideological opinion, read, study, understand NOTHING. Friend, I'm going to "draw" it for you. Let's say you receive R$2.000,00 in salary, with which you feed yourself and barely pay your basic bills, so you decide to pay the minimum on your credit card, cut out your children's snacks, books and notebooks, don't pay for electricity or water and start eating out once a day. You take this leftover and buy dollars and say you made a surplus, that you did your homework. And that's what Miley is doing. Social welfare 1. In addition to this terrible management, he is not paying attention to the rest of the world, which is moving to stop using the dollar to back its operations, and this reserve of his will have an even smaller effect on the economy.
My sister lives there, your comment is completely removed from reality, it is necessary to understand what crisis means for the Argentine context, living as a Brazilian middle class in Argentina would be like being poor, if you have never been there, you don't have much to say, you only feed on what the media wants to present to you, you idiot
90 percent of Brazil lives in poverty in slums and outskirts, 90 percent of Brazilian women abroad are prostitutes, the majority of the population lives in back houses and doesn't have cars, they wear flip-flops and shorts, 97 percent of the population can't tell where Brazil is on a map... Seriously, do you want to compare Argentina to Brazil? LOL, STOP BEING JEALOUS, Brazil is only an example of welcoming people, whores, fans and drugs, no one imitates this country, stop being stupid.