If Argentina increases its imports significantly, what is the likely impact on its current account balance?

If Argentina increases its imports significantly, it will likely have a negative impact on its current account balance. The current account balance measures the difference between a country's imports and exports of goods and services. When imports rise, it means Argentina is buying more from other countries than it is selling, leading to a trade deficit. For example, if Argentina imports more machinery and electronics but does not increase its exports at the same rate, it will spend more money on foreign goods than it earns from selling its own products abroad. This imbalance can strain the economy and may lead to increased borrowing or reduced foreign reserves.