Argentina's Economic Struggle: $12.3 Billion Outflow Amid Inflation Battle

Argentina has faced a significant economic challenge over the past year with a net outflow of $12.3 billion, according to the latest central bank report. This outflow has hampered the country's ability to build up its foreign reserves.

President Javier Milei's efforts to stabilize the peso amidst high inflation have not been enough to curb the economic strain, as high domestic prices encourage imports and dissuade tourists. The outflow continued in April, with $636 million more leaving than entering the country.

While recent IMF funds have helped Argentina relax some capital controls, persistent trade and services deficits are an ongoing concern. With an election campaign in play and reduced exports expected, economic pressures remain high, analysts warn.

(With inputs from agencies.)