BUENOS AIRES The pilates studio in the center of the Argentine capital is called Sisu Pilates.
It is owned by someone who moved to Argentina from the United States seven years ago Arja Pirinen.
– At first I came to Buenos Aires to study tango, but I ended up here as an entrepreneur in the middle of an eternal crisis, says Pirinen.
Argentina has suffered from inflation and a chronic economic crisis for decades. In February, however, inflation rose to over one hundred percent for the first time in 34 years.
It means that prices in grocery stores can rise even within hours.
Compared to a year ago, prices have more than doubled. Basic foodstuffs have become luxuries for many, and the state is now trying to ease the plight of citizens by freezing the prices of some products (you switch to another service).
Due to inflation, interest-free installment contracts have also become popular. This way, the price of the product does not increase, even if the value of money decreases.
The name of Pirinen’s pilates studio describes the attitude to entrepreneurship in Argentina. He had to learn not only the language, but also how to manage wildly in the midst of galloping inflation.
– I raise prices at least 3-4 times a year. Customers don’t get angry because they are used to price increases.
Pirinen has also had to get used to that himself, as the landlord raises the rent of the Liiketila several times a year.
Dollar savings guarantee a carefree life
There is not just one reason for inflation in Latin America’s third largest economy. However, many economists consider the huge public debt and the structural deficit of the budget to be the main culprits.
Argentina’s public spending is many times higher than its income. To the International Monetary Fund, the IMF, Argentina owes more than any other country, a total of 45 billion dollars.
Inflation affects low-income people the most and is visible in the cityscape.
In cities, informal exchange markets have become more common (you switch to another service), with which people exchange goods for food and other goods. In addition, the number of homeless people has increased even more, as almost half of the population lives in poverty.
The winners are those who have access to dollars and euros.
Arja Pirinen’s salvation is online classes.
– I receive income from clients from abroad in euros and dollars. In addition, the number of local students has also increased despite inflation.
At Pirinen’s student With Cecilia Bisco41, can still afford to invest in his well-being.
Like many Argentines, Bisco keeps his savings in a foreign account.
– Of course, inflation affects the economy, but we have a way to cope. Unfortunately, they are illegal.
Bisco talks about the dark dollar and euro exchange markets operating in the country.
Argentina has long suffered from a dollar shortage, which is why citizens are only allowed to buy 200 official dollars per month.
That’s why the dark dollar trade is thriving. The unofficial, so-called blue dollar, dollar blue, offers the exchanger a significantly better exchange rate than the official one.
Although the activity is illegal, the state does not interfere in any way. Money changers openly advertise their services in downtown Buenos Aires.
“I don’t like the word crisis, for me this is normal”
Pirinen, who moved from the United States to Argentina, is not a rarity. In recent years, especially Europeans and Americans working remotely have come to Argentina favorite destination in Latin America. (you switch to another service)
The Russian war of aggression has also made Buenos Aires Vladimir Putin the number one destination for Russians fleeing the regime.
Instead, young and educated Argentines often look for a better tomorrow abroad. Last year to Spain moved the most Argentines in 15 years. (you switch to another service)
A 31-year-old who runs a tattoo shop in the fashionable district of Palermo Ivan Zaninovic says that many of his friends have left, mainly to Spain.
– I have traveled, but I am not interested in moving away permanently. Buenos Aires is my hometown and the best place in the world.
Zaninovic reminds us that he has lived in the middle of inflation all his life.
– I don’t like the word crisis, this is normal for me. I don’t think it would be easier elsewhere.
This year Argentina will hold presidential elections.
The new president should be able to achieve at least some degree of economic balance.
– I have no expectations whatsoever. In my opinion, no party represents the people, says Zaninovic.
Arja Pirinen doesn’t expect change either.
– Living in Argentina teaches patience. People improvise here. They have a can-do attitude.