The recent shutdown of Fate, an 86-year-old tire manufacturer that employed more than 900 people, is far from being an isolated case in Argentina. Official figures show that factories in the country are working at half of their capacity and that, since Javier Milei took office in December 2023, over 20,000 companies have closed.

Fate’s closure is part of a wave that is not only affecting small and medium enterprises, but major companies as well.

“A lot of companies are shutting down, especially in the Buenos Aires area,” said Florencia Fiorentin, chief economist at the Epyca consulting firm. “Basically, a drop in demand is combined with import liberalization — thus, companies are not selling.”

Alejandro Assuma, the Fate........

© Buenos Aires Herald