Alfonsín began his term with many economic problems.
The foreign debt was nearly 43 billion dollars by the end of the year, and the country had narrowly prevented a sovereign default in 1982.
During that year, the gross domestic product fell by 5.6%, and the manufacturing profits by 55%.
Unemployment was at nearly 10%, and inflation was nearly 209%.
It also appeared unlikely that the country would receive the needed foreign investment.
The country had a deficit of $6.7 billion.
Possible solutions such as a devaluation of the currency, privatization of industry, or restrictions on imports, would probably have proven to be unpopular.

Bernardo Grinspun, the first minister of the economy, arranged an increase in wages, reaching the levels of 1975.
This caused inflation to reach 32%.
He also tried to negotiate more favourable terms on the country's foreign debt, but the negotiations failed.
Risking a default, he negotiated with the IMF, which requested spending cuts.
International credits prevented default at the end of 1984, but he resigned in March 1985 when the debt reached $1 billion and the IMF denied further credits.
Grinspun was succeeded by Juan Vital Sourrouille, who designed the Austral plan.
This plan froze prices and wages, stopped the printing of money, arranged spending cuts, and established a new currency, the Austral.
The plan was a success in the short term, and choked inflation.
Inflation rose again by the end of the year, the CGT opposed the wage freeze, and business community opposed the price freeze.
Alfonsín thought that the privatization of some state assets and a deregulation of the economy might work, but those proposals were opposed by both the PJ and his own party.

With the support of the World Bank, the government tried new measures in 1987, including an increase in taxes, privatizations, and a decrease in government spending.
Those measures could not be enforced; the government had lost the 1987 midterm elections, "the 15" unions that had earlier supported the government distanced themselves from it, and the business community was unable to suggest a clear course of action.
The PJ, aiming for a victory in the 1989 presidential elections, opposed the measures that it believed would have a negative social impact.
The "Spring plan" sought to keep the economy stable until the elections by freezing prices and wages and reducing the federal deficit.
This plan had an even worse reception than the Austral plan, and none of the parties supported it.
The World Bank and the IMF refused to extend credits to Argentina.
Big exporters refused to sell dollars to the Central Bank, which depleted its reserves.
The austral was devaluated in February 1989, and the high inflation turned into hyperinflation.
The 1989 presidential elections took place during this crisis, and the Justicialist Carlos Menem became the new president.
Alfonsín began his term with many economic problems. The foreign debt was nearly 43 billion dollars by the end of the year, and the country had narrowly prevented a sovereign default in 1982. During that year, the gross domestic product fell by 5.6%, and the manufacturing profits by 55%. Unemployment was at nearly 10%, and inflation was nearly 209%. It also appeared unlikely that the country would receive the needed foreign investment. The country had a deficit of $6.7 billion. Possible solutions such as a devaluation of the currency, privatization of industry, or restrictions on imports, would probably have proven to be unpopular.
Bernardo Grinspun, the first minister of the economy, arranged an increase in wages, reaching the levels of 1975. This caused inflation to reach 32%. He also tried to negotiate more favourable terms on the country's foreign debt, but the negotiations failed. Risking a default, he negotiated with the IMF, which requested spending cuts. International credits prevented default at the end of 1984, but he resigned in March 1985 when the debt reached $1 billion and the IMF denied further credits. Grinspun was succeeded by Juan Vital Sourrouille, who designed the Austral plan. This plan froze prices and wages, stopped the printing of money, arranged spending cuts, and established a new currency, the Austral. The plan was a success in the short term, and choked inflation. Inflation rose again by the end of the year, the CGT opposed the wage freeze, and business community opposed the price freeze. Alfonsín thought that the privatization of some state assets and a deregulation of the economy might work, but those proposals were opposed by both the PJ and his own party.
With the support of the World Bank, the government tried new measures in 1987, including an increase in taxes, privatizations, and a decrease in government spending. Those measures could not be enforced; the government had lost the 1987 midterm elections, "the 15" unions that had earlier supported the government distanced themselves from it, and the business community was unable to suggest a clear course of action. The PJ, aiming for a victory in the 1989 presidential elections, opposed the measures that it believed would have a negative social impact. The "Spring plan" sought to keep the economy stable until the elections by freezing prices and wages and reducing the federal deficit. This plan had an even worse reception than the Austral plan, and none of the parties supported it. The World Bank and the IMF refused to extend credits to Argentina. Big exporters refused to sell dollars to the Central Bank, which depleted its reserves. The austral was devaluated in February 1989, and the high inflation turned into hyperinflation. The 1989 presidential elections took place during this crisis, and the Justicialist Carlos Menem became the new president.
Raúl Alfonsín