Taylor Swift doping the Argentine economy

American pop star Taylor Swift’s concerts have a doping effect on the Argentine economy. The pop star’s concerts in Buenos Aires are helping to boost tourism revenue at a time when the country is in recession.

Fans from neighboring countries also flock to Swift’s concerts. Economists say the true impact of the pop diva’s visit is impossible to measure in an economy in free fall.

FAST DOPING FOR THE ECONOMY

But it is clear that the billionaire artist is breathing new life into the Argentine economy just two weeks before the presidential elections.

Taylor Swift’s 53 concerts in the United States added at least $4.3 billion to the country’s GDP, according to Bloomberg Economics. The US Federal Reserve (Fed) also announced that Swift’s concerts increased tourism revenue in cities such as Philadelphia.

In Mexico, a total of 180 thousand people attended the famous artist’s concerts, and the concerts alone generated an economic impact of 61.5 million dollars in four nights.

Argentina is one of the 20 countries Swift will visit during her Eras Tour, which will end in November 2024.

The International Monetary Fund (IMF) says Argentina has entered recession and predicts a 2.5 percent drop in the country’s economy this year. Inflation is also a big concern for the Latin American country. According to BBVA Research’s October forecast, inflation in the country is expected to exceed 200 percent by the end of 2023.

The inflationary spiral in the country masks major macroeconomic imbalances, such as a historic budget deficit and a rapidly increasing money supply, as well as ongoing negotiations over foreign debt. BBVA recently estimated that Argentina’s budget deficit as a percentage of GDP would be 2.8 percent.

IT WILL HAVE AN IMPACT ON THE ECONOMY

According to the newspaper El País, Taylor Swift’s visit to Argentina can have a positive impact on the economy. Swift fans from neighboring countries like Chile flock to concerts in Buenos Aires.

Economists say the true impact of the pop diva’s visit is impossible to measure in an economy in free fall. “Any prediction would be pure speculation,” said an economist from an international consulting firm. “It is impossible to make a definitive statement in this economic context, with all its uncertainty and informality,” he said.

Although Airbnb lists 20,000 short-term rental houses in Buenos Aires, it is now very difficult to find these houses in the northern part of the city where Swift will perform. Some of these houses cost more than $200 a night, almost 12 times the average salary.

Hotels also say demand is much higher than normal. The statement from the Argentine Hotel Association said: “The hotels in Buenos Aires are completely full.” On the other hand, a serious economy consisting of t-shirts, souvenirs and imitation products has emerged in the city.

THE ELECTIONS ARE COMING

After Swift’s concert, the latest political debates and the country’s current economic problems will once again be the main agenda.

Presidential candidate Sergio Massa focuses on social welfare programs and the suspension of certain taxes, such as VAT and food income tax, for a large part of the population.

Right-wing candidate Milei, on the other hand, will have to explain why he has moved away from his previous promises to dollarize the economy and offer alternative proposals.