Economy and Development
As the value of its currency continues to fall and its economy edges nearer to collapse, Argentina’s government is scrambling to establish new measures to protect its currency and to save the country from a long-term recession. The government recently proposed a new plan for the 2019 budget which now includes various initiatives to cut government spending.
During his 2016 Presidential campaign, Trump repeatedly claimed that, if elected, he would end all of the United States’ “bad” trade deals and replace them with better ones. Trump voiced his concerns about the North Atlantic Free Trade Agreement (NAFTA) in particular by referring to it as the “worst trade deal in history.” Created in 1992 by the U.S. President, Mexican President, and Canadian Prime Minister at the time, NAFTA established an economic agreement that reduced tariffs on the majority of goods traded between the three countries.
Venezuela is currently fighting one of the worst cases of hyperinflation since the early 1900s and the International Monetary Fund predicts that the situation will only get worse. Due to a combination of poor social policies, a failing national oil industry, and a President who seeks to weaken government institutions and allow political corruption, the Venezuelan bolivar has suffered significantly. The IMF originally projected the bolivar’s annual inflation rate would hit thirteen thousand percent by the end of the year, but has since revised that estimation to one million percent.