Argentina is a third world country with first world taste. It is the land of Malbec, Borges and polo, but decades of economic mismanagement has crippled the country’s economy. Inflation is spiralling out of control: the annual rate hit 138 per cent last month, trailing only Venezuela and Zimbabwe.
It didn’t have to be like this: a century ago, Argentina’s economy surpassed France and Germany, boasting a GDP per capita twice that of Spain. Its geography should have set the stage for success, being the South American country with the biggest variety of natural resources.
As I write, £1 fetches 1259 pesos, in contrast with the 415 pesos it commanded at the beginning of the year.
Every month, shops are raising their pricing to keep up, while wages are lagging behind. The minimum monthly wage currently stands at 132,000 pesos, or £112. International travel is almost unheard of, with purchasing power abroad having plummeted.
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