Argentina’s Economy in Crisis: Inflation Hits 100%

  • Argentina is facing a severe economic crisis, with the Buenos Aires Jorge Newberry airport becoming an unofficial shelter for homeless people.
  • The number of homeless people has increased by 30% since 2019, according to a local charity.
  • The country’s annual inflation rate reached over 100% in February, marking the first time since 1991 that it has been in triple digits.

Argentina is currently grappling with a deepening economic crisis, as the nation’s inflation rate has skyrocketed to over 100%, the first time it has reached triple digits since 1991. This alarming statistic was revealed in a recent video report by Al Jazeera English (below), which provides a stark snapshot of the dire situation on the ground.

The Buenos Aires Jorge Newberry airport, once bustling with travelers, has now become an unofficial shelter for the homeless. The video report features individuals like Laura, who, along with many others, has been forced to seek refuge in the airport due to the biting cold outside. “There’s a lot of us sleeping here. In a few hours, there’ll be more. If you come at night, it’s full of people. We come here because it’s cold out here; at least we can sleep,” Laura shares.

The number of homeless people in Argentina has surged by 30% since 2019, according to a local charity. This increase is a direct consequence of the economic crisis, with many citizens unable to afford basic necessities. Roxana, another individual featured in the report, receives a government pension of about $200 a month.

However, due to the fluctuating exchange rate, she often ends up with less. “If I pay rent, I don’t eat, and if I pay for food, I’m on the street,” she says, encapsulating the harsh reality faced by many Argentinians.

The economic crisis has also sparked widespread protests, with demonstrators demanding salary increases in line with the rising cost of living.

Source: Statista

The government’s recent deal to restructure its $45 billion loan with the International Monetary Fund (IMF) has yet to make a significant impact on the lives of ordinary citizens. The frustration among the populace is palpable, as they struggle to keep up with the escalating costs.

The high inflation rate has also led to a mass exodus of Argentinians seeking better opportunities abroad. Elizabeth, a woman featured in the report, is one such individual. She is moving to France after securing a job there, as her salary in Argentina is insufficient to cover rent. “Here, the situation is difficult. My salary is not enough to pay rent. It doesn’t matter how much they raise my salary, inflation is too high,” she laments.

The current situation in Argentina is a stark reminder of the devastating effects of economic instability. As the nation grapples with this crisis, the hope is that the government’s efforts to restructure its debt and control inflation will soon start to bear fruit, improving the lives of its citizens. Until then, the people of Argentina continue to endure, hoping for better days ahead.

Main photo: Homeless people at Plaza de la República on Avenida 9 de Julio in Buenos Aires, Argentina 

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