Argentina's Economic Turbulence: A wider storm sweeping through emerging markets

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Staying in Latin America. Argentina's economy is struggling in the face of a falling peso and rising inflation. And now the Argentine government is seeking aid from the International Monetary Fund to prevent a collapse of its currency. Argentines are worried about their economic future but so too are the country's neighbors. CGTN's Joel Richards reports.

Argentina announced its World Cup squad on Monday, and in downtown Buenos Aires, Walter Mastronunzio is hoping the tournament in Russia will give his business a boost. This was the scene at his store.

WALTER MASTRONUNZIO SHOP OWNER "Sales are completely frozen. I hope it picks up again, but it takes time. We have been through this many times, Argentina goes through the same thing very often."

Official figures show the annual inflation rate is running at more than 25 percent. Argentina is facing slower growth after the peso dropped to an all-time low earlier this month. Last week, President Mauricio Macri said the worst is now over.

MAURICIO MACRI PRESIDENT OF ARGENTINA "We consider the turbulence over the exchange rate as having been overcome, but we consider it important, very important, to recognize the moment of nervousness that various sectors of the population experienced."

Argentina is now in negotiations with the IMF for a loan for the first time in well over a decade as it looks for a solution to its economic problems.

JOEL RICHARDS BUENOS AIRES "For many Argentines, economic uncertainty conjures up painful memories of the 2001 economic crash, when Argentina defaulted on its foreign debt. But it is not only Argentines but also their neighbors, who are wary of the current situation."

At Torcuato Di Tella University in Buenos Aires, Pablo Schiaffino says the government was right to go to the IMF, but the decision carries a political cost. He believes with slower growth in Argentina, other Latin American countries will be affected.

PABLO SCHIAFFINO TORCUATO DI TELLA UNIVERSITY "When Argentine economy goes up, then that's good news for Chile, Brazil, Uruguay, Paraguay - the economic neighbors. There is a strong correlation between our cycle and theirs. The growth rate of our economy is going to slow down so for Brazil, and in particular for Uruguay, this is very bad news."

Macri has made changes to his economic team after the recent turbulence. Argentina and Latin America hope the economic performance begins to match the high expectations placed on the national football team. Joel Richards, CGTN, Buenos Aries.