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 also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in early 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, but was stymied in her efforts to hike export taxes still further by protesting farmers. Her government nationalized private pension funds in late 2008, which bolstered government coffers, but failed to assuage investors' concerns about the direction of economic policy.
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
4.3% (2008 est.)country comparison to the world: 61
Labor Force
16.27 millioncountry comparison to the world: 36 note: urban areas only (2008 est.)
Electricity production
109.5 billion kWh (2007 est.)country comparison to the world: 30
Electricity Consumption
99.21 billion kWh (2007 est.)country comparison to the world: 31
Electricity Exports
2.628 billion kWh (2007 est.)
Electricity Imports
10.28 billion kWh (2007 est.)
Unemployment Rate
7.9% (2008 est.)country comparison to the world: 108 8.5% (2007 est.)
Population Below Poverty Line
23.4% (January-June 2007)
Household Income or Consumption by Percentage Share
Lowest 10%: 1%
Highest 10%: 35% (January-March 2007)
Distribution of Family Income Gini Index
49 (January-March 2007)country comparison to the world: 27
Budget
Revenues: $86.65 billion
Expenditures: $82.85 billion (2008 est.)
Public Debt
48.6% of GDP (2008 est.)country comparison to the world: 40 118% of GDP (June 2004 est.)
Central Bank Discount Rate
NA
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$NA (31 December 2008)$72.55 billion (31 December 2007)
Market Value of Publicly Traded Shares
$52.31 billion (31 December 2008)country comparison to the world: 50 $86.68 billion (31 December 2007)$79.73 billion (31 December 2006)
Reserves of Foreign Exchange and Gold
$46.37 billion (31 December 2008 est.)country comparison to the world: 28 $46.12 billion (31 December 2007 est.)
Debt External
$128.2 billion (31 December 2008)country comparison to the world: 34 $124 billion (31 December 2007)
Stock of Direct Foreign Investment at Home
$73.98 billion (31 December 2008 est.)country comparison to the world: 41 $66 billion (31 December 2007 est.)
Stock of Direct Foreign Investment Abroad
$28.75 billion (31 December 2008 est.)country comparison to the world: 35 $26.92 billion (31 December 2007 est.)
Exchange Rates
Argentine pesos (ARS) per US dollar - 3.1636 (2008 est.), 3.1105 (2007), 3.0543 (2006), 2.9037 (2005), 2.9233 (2004)
