Will the Economic Crisis in the USA Effect Argentina?

Dudester

Registered
I'm learning about economics at super sonic speed but still have a long way to go. I am wondering what the possible effects of the economic situation in the USA can have on Argentina? What will it do to apartment prices (to buy) for expats (since I'm still very serious about doing this eventually). How about inflation and the rising cost of food prices, clothes, furniture , and electronics? Do you see another collapse (2001) hitting Argentina due to the very high and continuous rising inflation? Thanks, Dudester
 

Moxon

Registered
dudester, your self appraisal of your grasp on all things economic seems to be on a similar flight path to various stock prices (apple?) - could the two be linked somehow?
 

Rad

Registered
The crisis in USA and Europe is very bad for emerging economies and especially for countries where most economic growth in recent years came from exports. Western countries will lower consumption, but emerging producer countries will have to lower production.
 

Napoleon

Registered
Argentina's major exports are FOOD. NOT manufactured goods.

The economic crisis doesn't mean that people around the world are going to stop eating.
 

perry

Registered
Many here believe that the world economic situation will affect prices of Real Estate in Argentina and up to now that has not shown itself to be true.
The market here is 80 percent cash and family owned . There are few people with mortgages meaning less desperate sellers. Many sellers now are pricing their properties above market rates and waiting for a sale. In some areas this has become ridiculuos especially Palermo Soho and San Telmo.

I believe that properties will increase in price as demand in Buenos Aires is high and supply is low due to the new laws from AFIP implemented in the beginning of 2008.

Since the crash in the USA of the last week more dollars have been transferred into Argentina than for many many years. Overseas Argentines are scared to hold onto their assets in United States and Europe and are bringing back their money to reinvest in Argentina which for them may be a safer bet .

A lot of that investment will be in Real Estate as in a country like Argentina it has been the most reliable and safest purchase.
 

austin

Registered
Dudester, you should have written "affect" and not "effect" (Will the economic crisis in the USA AFFECT Argentina). You need a VERB, not a noun! Brush up on your English!
 

Rad

Registered
The crisis will result in politicians promoting local products and barriers against imports. People will buy inferior goods, including inferior food - they may not eat less, only lower quality.
The investment flows towards Argentina will also slow considerably.

Argentina WILL be affected.
 
Top