Inflation in Argentina has soared to 124%. The country is already on the verge of collapse. Countries such as Türkiye and Argentina are now facing great economic challenges. Inflation has reached levels last seen in 1991, triggering a painful cost-of-living crisis in the South American country. Countries such as Turkey and Argentina face a series of economic challenges, such as unstable growth rates, sharp currency depreciation and soaring inflation. These countries have been in economic depression in recent years. Although the pace of development in each country is not the same, they are all in depression to varying degrees. In the past two years, as their economic situation has become worse and worse, the possibility of many international trade risk events has increased, such as the destination port refusing to pay or the buyer abandoning the goods.
For consumers in Argentina, prices are very volatile and change every day. As prices soar, shoppers are forced to search and choose cheaper prices every day. Because inflation causes prices to rise, daily prices and even prices in each store will vary greatly. It’s also very painful for shoppers. The monthly inflation figure for August was 12.4%, which is also astonishing. This figure is pushing poverty levels over 40%. Analysts predict that the inflation rate at the end of the year will exceed 169%, and predict that the inflation rate in September and October will be 12% and 9.1% respectively.
In other words, Argentina has fallen into a cycle of economic crisis. People’s confidence in the Argentine peso has also been severely lost. Argentina is still trying to salvage a $44 billion deal with the IMF and has questions about a $16 billion bill following a U.S. court ruling. What Argentina is now facing is the continued depreciation of the peso, serious inflation and economic recession. This will affect next month’s presidential election. Inflation and the economy could get worse due to election uncertainty. Some analysts say that inflation may accelerate to 180%, which may set a new record. For enterprises, they are stuck in the dilemma of the continuous appreciation of goods and the rising prices of raw material replenishment. Uncertainty about inflation can also lead to product shortages, and business owners face uncertainty every day. Therefore, business owners also need to carefully consider these issues of production and replenishing raw materials, and in some cases, they may even have to consider whether to close their doors for a period of time.
Sellers engaged in international trade should pay attention to trade with these countries and settle the payment and freight as soon as possible. Inflation in these countries changes too much, causing exchange rates to fluctuate greatly, which may affect buyers’ ability to pay, so sellers should be careful. In the current global uncertain economic environment, how to protect themselves and create greater profits is a question that every seller needs to seriously consider. Beware of issues such as abandoned goods or refusal of payment at the destination port. Making reasonable profits while controlling risks is the long-term development method for sellers.
