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 8.5% annually over the subsequent six 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, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy has rebounded from the 2009 recession, but the government's continued reliance on expansionary fiscal and monetary policies risks exacerbating already high inflation, which remains under-reported by official statistics.
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
6.7% (2010 est.)country comparison to the world: 45
Labor Force
16.62 millioncountry comparison to the world: 36 note: urban areas only (2010 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% (2010 est.)country comparison to the world: 84 8.7% (2009 est.) note: based on official data, which may understate unemployment
Population Below Poverty Line
30% (January-June 2010)
Household Income or Consumption by Percentage Share
Lowest 10%: 1.2%
Highest 10%: 32.6% (2009)
Distribution of Family Income Gini Index
45.7 (2009)country comparison to the world: 38
Public Debt
50.3% of GDP (2010 est.)country comparison to the world: 51 48.6% of GDP (2009 est.)
Central Bank Discount Rate
NA%
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$41.66 billion (31 December 2010 est)country comparison to the world: 46 $35.33 billion (31 December 2009 est)
Stock of Broad Money
$112.9 billion (31 December 2010 est.)country comparison to the world: 49 $85.18 billion (31 December 2009 est.)
Stock of Domestic Credit
$113.9 billion (31 December 2010 est.)country comparison to the world: 47 $84.92 billion (31 December 2009 est.)
Market Value of Publicly Traded Shares
$48.93 billion (31 December 2009)country comparison to the world: 48 $52.31 billion (31 December 2008)$86.68 billion (31 December 2007)
Reserves of Foreign Exchange and Gold
$53.61 billion (31 December 2010 est.)country comparison to the world: 20 $48.03 billion (31 December 2009 est.)
Debt External
$128.6 billion (31 December 2010 est.)country comparison to the world: 32 $118.4 billion (31 December 2009 est.)
Stock of Direct Foreign Investment at Home
$86.8 billion (31 December 2010 est.)country comparison to the world: 36 $80.1 billion (31 December 2009 est.)
Stock of Direct Foreign Investment Abroad
$30.16 billion (31 December 2010 est.)country comparison to the world: 38 $29.46 billion (31 December 2009 est.)
Exchange Rates
Argentine pesos (ARS) per US dollar - 3.8983 (2010), 3.7101 (2009), 3.1636 (2008), 3.1105 (2007), 3.0543 (2006)
