Economy Overview
Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Over the past decade, however, the country has suffered recurring economic problems of inflation, hugh external debt, capital flight, and budget deficits. Growth in 2000 was a negative 0.5%, as both domestic and foreign investors remained skeptical of the government's ability to pay debts and maintain the peso's fixed exchange rate with the US dollar. The economic situation worsened in 2001 with the widening of spreads on Argentine bonds, massive withdrawals from the banks, and a further decline in consumer and investor confidence. Government efforts to achieve a "zero deficit", to stabilize the banking system, and to restore economic growth proved inadequate in the face of the mounting economic problems. The peso's peg to the dollar was abandoned in January 2002, and the peso was floated in February; the exchange rate plunged and inflation picked up rapidly, but by mid-2002 the economy had stabilized, albeit at a lower level. Output was 14.7% below the previous year's figure, and unemployment remained high, at 21.5%. In order to reverse the crisis some economists recently have advocated that Argentina adopt the US dollar as the national currency, however, others argue tieing the economy closely to the dollar was precisely what led to Argentina's current problems.
Agriculture Products
sunflower seeds, lemons, soybeans, grapes, corn, tobacco, peanuts, tea, wheat; livestock
Industries
food processing, motor vehicles, consumer durables, textiles, chemicals and petrochemicals, printing, metallurgy, steel
Industrial Production Growth Rate
1% (2000 est.)
Labor Force
15 million (1999)
Electricity production
82.802 billion kWh (2000)
Electricity production by source
Fossil fuel: 52%
Hydro: 41%
Other: 0% (2000)
Nuclear: 7%
Electricity Consumption
80.806 billion kWh (2000)
Electricity Exports
3.7 billion kWh (2000)
Electricity Imports
7.5 billion kWh (2000)
Currency
Argentine peso (ARS)
Unemployment Rate
25% (yearend 2001)
Population Below Poverty Line
37% (2001 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $44 billion
Expenditures: $48 billion, including capital expenditures of $NA (2000 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
Debt External
$155 billion (2001 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
Argentine pesos per US dollar - 1.33325 (January 2002), 1.000 (1997-2001); note - fixed rate pegged to the US dollar was abandoned in January 2002; peso now floats
