It is starting to look like deja vu for Argentina. The country came out of a terrible financial crisis only a few years ago. The 2001 slide seems like a distant memory for residents of Buenos Aires, who crowd into restaurants and spend their money freely. The government has been busy spending too. They are in debt after revamping the country with new schools and other civic projects.
And, unlike neighboring countries, Argentina did not build up its financial reserves for a rainy day. Now, with inflation at nearly 25% according to economists (the government says its only 10%), there are storm clouds on the country’s horizon. Could there be a repeat of 2001, when the economy came crashing down and tourists became targets of kidnappers seeking ransoms? It’s possible. The US and the IMF, who basically bailed out Argentina in ’01 might hesitate before doing it again. But the chaos of ’01 has not yet hit again. But, with uncertainty in the air, travelers might want to opt for a bit of Southern Hemisphere sun in Brazil, rather than B.A.
[Via Wash. Post]