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A deficit on the current account means that a country is importing more than they are exporting.
However, in Argentina business prospect, they exported more than they imported. Therefore, the high number in the current account deficit is mainly from the net investment income rather than the goods and services. The reason for this deficit could be caused by the following which are, Argentina excess spending in the economy, fixed exchange rate, high inflation. Government borrowing could have a part to play as this will increase and aggregate the demand in the economy and thus increases the demand for import...
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