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 about 9% per year from 2003 to 2005. Growth is being led by a revival in domestic demand, solid exports, and favorable external conditions. The government boosted spending ahead of the October 2005 midterm congressional elections, but strong revenue performance allowed Argentina to maintain a budget surplus. Inflation has been rising steadily and reached 12.3 percent in 2005.
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
7.7% (2005 est.)
Labor Force
15.34 million (2005 est.)
Electricity production
87.16 billion kWh (2004)
Electricity Consumption
82.97 billion kWh (2004)
Electricity Exports
2.07 billion kWh (2004)
Electricity Imports
1.561 billion kWh (2004)
Unemployment Rate
11.6% (2005 est.)
Population Below Poverty Line
38.5% (June 2005)
Household Income or Consumption by Percentage Share
Lowest 10%: NA
Highest 10%: NA
Distribution of Family Income Gini Index
52.2 (2001)
Budget
Revenues: $42.63 billion
Expenditures: $39.98 billion; including capital expenditures of $NA (2005 est.)
Public Debt
72.5% of GDP (2005 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$28.09 billion (2005 est.)
Debt External
$118.2 billion (2005 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
Argentine pesos per US dollar - 2.9037 (2005), 2.9233 (2004), 2.9006 (2003), 3.0633 (2002), 0.9995 (2001)
