ARGENTINA: A Scorching Heatwave & more – 16th Jan 2025

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 16th of January twenty twenty-five. A quick summary of what's going down in Argentina.

In case you haven’t noticed, many regions are dealing with a scorching heatwave this week. Temperatures have climbed above forty degrees Celsius (104 degrees Fahrenheit) in some provinces and hit thirty-five degrees Celsius (ninety-five degrees Fahrenheit) in the Buenos Aires Metropolitan Area. The intense heat has pushed electricity demand by 1,000 megawatts (which is a lot) over the forecast of 23,500, though it remains below the twenty twenty-four record.

The National Meteorological Service has issued yellow alerts across much of the country, warning that consumption could reach new peaks and potentially cause power outages. The government is looking into importing energy from neighboring countries to help meet demand. Residents are encouraged to stay hydrated, avoid being outside during peak sun hours, and take extra precautions—especially for vulnerable groups like children and older adults.

Shifting gears from heatwaves to economics, inflation finally seems to be cooling off. On Tuesday, the 14th, the Central Bank announced a decision to slow its monthly controlled devaluation of the peso—commonly called the crawling peg—from 2% to 1%. Recent improvements in inflation trends made this move possible.

In December, Buenos Aires City still saw an inflation rate above 3%, slightly overshooting the government’s target. But despite this, the Central Bank stuck to its plan, signaling optimism about lower inflation ahead. Strict currency controls and dollar sales in financial markets continue to stabilize the peso, though Argentina’s high prices—now above the regional average—show a long road ahead for balancing growth and stability.

Speaking of inflation, the annual rate dropped to 118% in twenty twenty-four, a notable improvement from 211% in twenty twenty-three. It’s a win for the current administration, but the bigger picture still looks grim: real wages lag behind inflation, poverty surged earlier in the year, and Argentina’s international reserves are still in the red despite a trade surplus and a recent tax amnesty.

The International Monetary Fund, or IMF, hasn’t held back its criticism, flagging rising poverty and Argentina’s rigid currency controls as pain points. The IMF recommends lifting foreign exchange restrictions to help rebuild reserves and stabilize the economy.

In financial news, the Central Bank recently tackled its debt head-on, paying over 4.3 billion dollars on sovereign bonds—its largest payment in three years. This included bonds under both Argentine and U.S. jurisdictions. While this repayment didn’t disrupt markets since it was pre-announced, analysts are cautiously optimistic. The move could lower Argentina’s country risk index and improve international credit access.

Over in Congress, some political drama is brewing. Starting the 20th of January, lawmakers will meet for special sessions to address a packed agenda. Key issues include a revamped anti-corruption bill, nominations for Supreme Court justices, reforms to bankruptcy laws, changes to the penal code, and an attempt to eliminate mandatory primary elections.

Meanwhile, the Milei administration is shaking things up in the science sector. On Tuesday the 14th, it launched a sweeping review of government-funded research programs, canceling those that don’t align with its strategic focus areas like agroindustry, mining, and the knowledge economy. This move, aimed at cutting public spending, hits university-led social science and environmental research projects the hardest.

Critics have slammed the decision, saying it sidelines essential programs like climate change studies and ocean research. The government, however, is defending the cuts as necessary for addressing inefficiencies and irregularities in program management.

On that note about environmental issues, wildfires in Nahuel Huapi National Park near Bariloche are worsening. A lightning strike during a storm sparked the blaze, which has now consumed over 3,500 hectares or 8,600 acres. For three weeks, firefighters and rescue teams have struggled with the flames, battling strong winds and dry conditions that make containment nearly impossible.

Authorities have issued high-risk fire warnings for the region and restricted access to certain areas. They’re urging locals to avoid lighting fires in unauthorized zones and to follow safety guidelines to help prevent further damage.

In other news, The Health Ministry announced the dismissal of 1,400 workers, citing the need to reorganize and optimize resources due to alleged irregularities in hiring and task duplication under the previous administration. This move follows a series of cuts in the health sector, including earlier layoffs at national hospitals and reduced funding for essential health programs. Union representatives expressed outrage, describing the decision as devastating, with some hospitals facing severe understaffing.

Shifting to a brighter note for Argentina’s medical community—Argentine doctors can now have their medical degrees internationally recognized without extra certifications. The Ministry of Human Capital announced the milestone after the country’s accreditation system aligned with the World Federation for Medical Education standards. This achievement means local doctors can now practice abroad more easily.

From traveling abroad to traveling at home—long-distance bus companies have a new policy for pet lovers. Cats and small dogs, weighing up to 10 kilograms or twenty-two pounds, can now ride along with their humans on certain routes. Following a law that deregulated long-distance transport, companies like FlechaBus, Urquiza, and Plusmar are introducing pet-friendly services.

Each bus allows up to two pets, which must stay in designated areas and pay 50% of the ticket price. Popular destinations like Mar del Plata and Concepción del Uruguay are already seeing families take advantage of this inclusive new policy.

Now, here’s a question for you: are air fryers on your shopping list? If so, the Financial Times ran a piece called Javier Milei’s next economic mission: affordable air fryers. It highlights the president’s efforts to dismantle protectionist trade policies by cutting tariffs and streamlining imports. While many consumers appreciate the move, domestic manufacturers worry they won’t be able to compete with cheaper foreign goods. If you want to read more, follow the link in the show notes.

Also, the government has overhauled its anti-dumping measures to encourage competition, lower prices, and make trade more transparent. Luis Caputo, the Economy Minister, announced it this week, sharing that the changes include limiting anti-dumping tariffs to three years (with a potential two-year extension) and speeding up investigations into dumping from twelve to eight months. Previously, tariffs could be renewed indefinitely, which Caputo criticized for driving up costs for consumers. The reforms also streamline paperwork, involve more agencies for oversight, and aim to balance public and consumer interests.

Examples of current tariffs include a staggering 250% on imported water pumps and 200% on food processors, with Caputo stressing the need to fix these imbalances.

Back to the topic of international headlines, The Guardian recently weighed in on Milei’s economic approach. In an opinion piece published Sunday the 12th, the paper criticized his austerity measures during his first year in office. It pointed to sweeping cuts in public services and jobs, which it says have fueled poverty, rising inflation, and violent protests.

Link in the show notes!

Turning to sports—good news for fans of Franco Colapinto. The Argentine driver has signed a multi-year contract with the Alpine F1 Team and will join Ryo Hirakawa and Paul Aron as a reserve driver in twenty twenty-five. At just twenty-one, Colapinto is looking ahead to new opportunities, following his debut with Williams F1 in twenty twenty-four. While he won’t initially have a regular racing seat, rumors suggest he could replace Jack Doohan later in the season.

For tennis fans, the Argentine player Francisco Cerúndolo advanced to the third round of the Australian Open after a bittersweet win against fellow Argentine Facundo Díaz Acosta, who was forced to retire due to an injury. Cerúndolo, now facing either Alex de Miñaur or Tristan Boyer, expressed sympathy for his opponent while celebrating his improved performance compared to earlier matches. Meanwhile, Díaz Acosta will focus on recovering in time for the South American clay-court circuit.

And that's it for this week!

Thanks for tuning into the Rorshok Argentina update. You can connect with us on social media as @rorshok__argentina on Instagram or @Rorshok_ARG on Twitter.

¡Nos vemos la próxima semana!