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 problems of inflation, external debt, capital flight, and budget deficits. Growth in 2000 was a negative 0.8%, 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 real GDP fell by 10.9% in 2002, but by mid-year the economy had stabilized, albeit at a lower level. GDP expanded by more than 8% in 2003 and again in 2004, with unemployment falling and inflation remaining in single digits.
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
12% (2004 est.)
Labor Force
15.04 million (2004 est.)
Electricity production
81.39 billion kWh (2002)
Electricity Consumption
81.65 billion kWh (2002)
Electricity Exports
2.818 billion kWh (2002)
Electricity Imports
8.775 billion kWh (2002)
Unemployment Rate
14.8% (2004 est.)
Population Below Poverty Line
44.3% (June 2004)
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $29.15 billion
Expenditures: $26.84 billion, including capital expenditures of NA (2004 est.)
Public Debt
118% of GDP (June 2004 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$19.47 billion (2004 est.)
Debt External
$157.7 billion (2004 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
Argentine pesos per US dollar - 2.9233 (2004), 2.9006 (2003), 3.0633 (2002), 0.9995 (2001), 0.9995 (2000)
