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flag Argentina Argentina: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

After the severe recession, which lead to the Argentinian bankruptcy in 2001-2002, the economy saw a rapid and stable growth, before being hit by the global financial crisis. In 2009 the economy contracted sharply as an effect of the fall in demand (0.9% of growth) but in 2010 it experienced a quick and vigorous recovery, together with the rest of the South-American continent. The 2010 growth, estimated at 7.5% and driven by household consumption, public spending good performance of the agricultural sector and dynamic trade with Brazil, should nevertheless slow down in 2011.

In the context of the coming 2011 elections, the government of Cristina Fernandez de Kirchner is likely to continue the expansionist policy to stimulate domestic demand. Controlling the increasing inflantion also remains a priority. In addition, the Argentinian economy is suffering from structural faults: the financial system remains fragile and the country needs to deal with an energy crisis dues to lack of investment in this sector.

The social situation of the country is sensitive: unemployment and malnutrition persist, with
25% of the population living under the poverty line.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 310.35369.99e435.18e468.89492.98
GDP (Constant Prices, Annual % Change) 0.89.2e8.0e4.64.2
GDP per Capita (USD) 7,7339,131e10,640e11,35811,833
General Government Balance (in % of GDP) -1.7-0.8-2.9-2.5-2.0
General Government Gross Debt (in % of GDP) 58.749.1e43.3e41.540.4
Inflation Rate (%) 6.310.511.5e11.811.0
Unemployment Rate (% of the Labor Force) 8.77.87.36.96.7
Current Account (billions USD) 6.472.79-1.23e-4.40-5.24
Current Account (in % of GDP) 2.10.8-0.3-1.1-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Having lost the position of a superpower it occupied at the beginning of the 20th century, Argentina remains an important world economy, namely due to its agricultural production. The agricultural sector, which is based livestock farming, cultivation of cereals (wheat, corn, soy) and citrus fruit, represents around 10% of the country’s GDP.

Rich in energy resources, Argentina is the world’s fourth largest oil producer and first largest natural gas producer in Latin America.

The industry sector has vastly expanded over these last few years. It contributes to more than one third of the GDP. Food packaging (in particular meat packing, flour grinding, and canning) and flour-milling are the country's main industries.

The services sector followed the same trend as the industry sector. Today, it contributes to more than half of the GDP. Argentina has specialized in areas of high-tech services and offers excellent value for money specifically in software development, call centers and nuclear energy.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 1.2 23.1 75.2
Value Added (in % of GDP) 9.4 30.2 60.4
Value Added (Annual % Change) 28.0 8.8 13.6

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Argentine Peso (ARS) - Average Annual Exchange Rate For 1 USD 3.053.103.143.713.90

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Argentina on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
51.7/100
Position:
Mostly unfree
World Rank:
132/179
Regional Rank:
21/26

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Argentina is very open to international exchanges, foreign trade represening around 45% of the GDP. Its main commercial partners are the Mercosul countries (Brazil, Paraguay and Uruguay), China and the United States. Argentina exports more than it imports and its trade balance is therefore in surplus.The devaluation of the peso has boosted Argentina's exports (especially of agricultural products). However, the increased rate of the Argentinian peso compared to the American dollar risks damaging the competitiveness of Argentina's exports which would cause the balance of trade to deteriorate.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 34,15244,70657,42338,78056,443
Exports of Goods (million USD) 46,54655,77970,02355,66868,500
Imports of Services (million USD) 8,24210,56913,04111,65813,635
Exports of Services (million USD) 7,89910,23311,88410,76212,752
Imports of Goods and Services (Annual % Change) 15.420.514.1-19.030.6
Exports of Goods and Services (Annual % Change) 7.39.11.2-6.417.2
Imports of Goods and Services (in % of GDP) 19.220.320.716.017.6
Exports of Goods and Services (in % of GDP) 24.824.624.521.422.3
Trade Balance (million USD) 13,95813,45615,42318,52614,266
Trade Balance (Including Service) (million USD) 13,45812,94314,13817,36913,414
Foreign Trade (in % of GDP) 44.045.045.137.439.8

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Brazil 21.2%
China 8.5%
Chile 6.6%
United States 5.4%
Netherlands 3.5%
See More Countries 54.9%
Main Suppliers
(% of Imports)
2009
Brazil 30.5%
United States 13.3%
China 12.4%
Germany 5.1%
Mexico 3.0%
See More Countries 35.6%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Oil-cake and other solid residues, whether or not...Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya-bean oil 12.0%
Soya beans, whether or not brokenSoya beans, whether or not broken 7.3%
Soya-bean oil and its fractions, whether or not...Soya-bean oil and its fractions, whether or not refined (excl. chemically modified) 6.1%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.8%
Maize or cornMaize or corn 4.6%
See More Products 64.2%
Main Imports
(% of Imports)
2009
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 6.5%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 5.5%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 3.8%
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 3.1%
Powered aircraft "e.g. helicopters and aeroplanes"...Powered aircraft "e.g. helicopters and aeroplanes"; spacecraft, incl. satellites, and suborbital and spacecraft launch vehicles 2.9%
See More Products 78.3%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
State Portal
Ministry of the Economy
Secretariat of Agriculture, breeding, fishing and food (Sagpya)
Ministry of Foreign Relations, International Trade and Religion
Statistical Office
Instituto Nacional de Estadística y Censos (INDEC)
Central Bank
Banco Central de la República Argentina
Stock Exchange
Bolsa de Comercio de Buenos Aires
Search Engines
Grippo (in Spanish)
Lycos Argentina
Terra
Yahoo! Argentina
Economic Portals
Portal of Argentina, Economic Section

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Political Outline

Executive Power
Executive power is held by the President of the Argentine nation. It is his/her responsibility to respond to national interests.
The President is the supreme head of the country, head of government, the politician responsible for the general administration of the country and commander-in-chief of the armed forces. The president is elected by universal suffrage for four years and can be re-elected for two consecutive terms of office. The vice-president is elected with him/her. The president appoints the Council of Ministers.
Argentina has 23 provinces and 1 autonomous federal district, which have retained some powers which do not belong to the federal government. They elect their own legislators and provincial governors.
Legislative Power
The legislative power is composed of a two-chamber parliament: a lower chamber, the Chamber of Deputies elected for 4 years by direct universal suffrage, and an upper chamber, the Senate elected for 6 years also by direct universal suffrage.
The parliament is called Congreso Nacional (National Congress).
Main Political Parties
The country has two large political parties: the PJ (Partido Justicialista, also called the Peronist Party) and the UCR (Civic Radical Union). Traditionally, the UCR has a more middle class, urban electorate, and the PJ an electorate of workers. But today both parties have a wider electoral base. The smaller parties, like the center-right PRO (Republican Initiative for Alliance) and, further left, the ARI (Argentina for an Egalitarian Republic) occupy different positions in the political spectrum, and some are only active in a few provinces.
Current Political Leaders
President : Cristina FERNANDEZ de KIRCHNER (since 2007)
Vice President : Julio COBOS
Next Election Dates
Presidential elections:october  2011
Chamber of Deputies and Senate:october 2011
 

Indicator of Freedom of the Press

World Rank:
55/178
Evolution:
8 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
2/7
Civil Liberties:
2/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012