World Business Report Could Argentina expect a financial lifeline from the US?
Sep 23, 2025
As Argentina seeks financial support from the US, President Milei's austerity measures and the impact of US tariffs on local winemakers highlight the economic struggles. Meanwhile, Nigeria surprises with its first interest rate cut since COVID, signaling shifting growth dynamics. In a significant move, Indonesia and the EU forge a landmark trade agreement aimed at doubling trade through tariff removal, setting the stage for broader economic collaborations.
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Austerity Brought Stabilisation And Political Risk
- Javier Milei's austerity cut social spending sharply while seeking IMF support to stabilise reserves.
- The measures reduced inflation but left the president politically weakened after midterm losses.
Currency Volatility Threatens Recovery
- The peso plunged even as central bank intervened with its largest dollar sale in six years to curb the slide.
- Reserve declines and volatile markets keep recovery fragile despite lower inflation rates.
Winemaker On Tariffs Shifting Markets
- Patricia Ortiz described how US tariffs disrupted Argentina's wine exports and shifted European wines into regional markets.
- Her Mendoza winery now competes with cheaper European wines in Brazil after US market access changed.