Economy Overview
Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and a bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - the largest in history - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 9% annually over the subsequent five years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation, however, reached double-digit levels in 2006 and the government of President Nestor KIRCHNER responded with "voluntary" price agreements with businesses, as well as export taxes and restraints. Multi-year price freezes on electricity and natural gas rates for residential users stoked consumption and kept private investment away, leading to restrictions on industrial use and blackouts in 2007.
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
7.5% (2007 est.)
Electricity production
109.4 billion kWh (2006 est.)
Electricity Consumption
97.72 billion kWh (2006 est.)
Electricity Exports
2.628 billion kWh (2007 est.)
Electricity Imports
10.27 billion kWh (2007 est.)
Unemployment Rate
8.5% (2007 est.)
Population Below Poverty Line
Household Income or Consumption by Percentage Share
Lowest 10%: 1%
Highest 10%: 35% (January-March 2007)
Distribution of Family Income Gini Index
49 (2006)
Budget
Revenues: $48.99 billion
Expenditures: $61.23 billion (2007 est.)
Public Debt
56.1% of GDP (2007 est.)
Central Bank Discount Rate
NA
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$72.55 billion (31 December 2007)
Market Value of Publicly Traded Shares
$79.73 billion (2006)
Reserves of Foreign Exchange and Gold
$46.12 billion (31 December 2007 est.)
Debt External
$135.8 billion (31 December 2007)
Stock of Direct Foreign Investment at Home
$65.31 billion (2007 est.)
Stock of Direct Foreign Investment Abroad
$26.26 billion (2007 est.)
Exchange Rates
Argentine pesos (ARS) per US dollar - 3.1105 (2007), 3.0543 (2006), 2.9037 (2005), 2.9233 (2004), 2.9006 (2003)
