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Macro Economics
Macro Economics
Macro Economics
1. GDP growth Rate Of Argentina
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Argentina
0
2015 2016 2018 2019
-1
-2
-3
Series 1
14000
12000
10000
8000
6000
4000
2000
0
2015 2016 2017 2018
Series 1
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Argentina
Inflation Rate
45
40
35
30
25
20
15
10
0
2015 2016 2017 2018
Series 1
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Argentina
Interpretation of Graph 1:
The government of Argentina changed in 2015 and new president of Argentina Macri changed
many economic policies of previous government. He cut export taxes, lifted currency control and
allowing Argentina to resume access to international capital markets. The result become
unsuccessful in beginning as GDP growth rate. In 2016 the GDP growth rate decreases to -2.08.
But in 2017 positive result of polices began to came and the GDP growth resumed its growth and
increases 2.8%. In the late 2017 many factors began to problem for Argentina economy. One of
the problem was reducing investor interest in Argentina which again led Argentina economy
towards downward.
Interpretation of Graph 2:
GDP per capita measures the normal living standard of a person or economic well-being of
country and it is measured by dividing the GDP of a country to tis population. As in 2016 the
GDP of Argentina decreases which decreases the GDP per capita of Argentina. The GDP per
capita of Argentina rises in 2017 due to increase in GDP of Argentina. In 2018 the economy of
Argentina began to decline which decreases the GDP and GDP per capita of Argentina.
Interpretation of Graph 3:
The new President Macri issued $56 billion in external debt between January 2016 and June
2017. Meanwhile, capital inflows into the country to finance the deficit contributed to an
overvaluation of the peso, by 10%- 25%. This overvaluation also exacerbated Argentina’s
current account deficit. In the late 2017, several factors created problems for Argentina’s
economy: the U.S. Federal Reserve (Fed) began raising interest rates. The Argentine central bank
reset its inflation targets, raising questions about its independence and commitment to lower
inflation. Investors began selling Argentine assets, putting downward pressure on the peso. Due
to this in 2018 the inflation rate again rises.
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