Argentina: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
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 | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 310.35 | 369.99e | 435.18e | 468.89 | 492.98 |
| GDP (Constant Prices, Annual % Change) | 0.8 | 9.2e | 8.0e | 4.6 | 4.2 |
| GDP per Capita (USD) | 7,733 | 9,131e | 10,640e | 11,358 | 11,833 |
| General Government Balance (in % of GDP) | -1.7 | -0.8 | -2.9 | -2.5 | -2.0 |
| General Government Gross Debt (in % of GDP) | 58.7 | 49.1e | 43.3e | 41.5 | 40.4 |
| Inflation Rate (%) | 6.3 | 10.5 | 11.5e | 11.8 | 11.0 |
| Unemployment Rate (% of the Labor Force) | 8.7 | 7.8 | 7.3 | 6.9 | 6.7 |
| Current Account (billions USD) | 6.47 | 2.79 | -1.23e | -4.40 | -5.24 |
| Current Account (in % of GDP) | 2.1 | 0.8 | -0.3 | -1.1 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
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 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Argentine Peso (ARS) - Average Annual Exchange Rate For 1 USD | 3.05 | 3.10 | 3.14 | 3.71 | 3.90 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
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 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 34,152 | 44,706 | 57,423 | 38,780 | 56,443 |
| Exports of Goods (million USD) | 46,546 | 55,779 | 70,023 | 55,668 | 68,500 |
| Imports of Services (million USD) | 8,242 | 10,569 | 13,041 | 11,658 | 13,635 |
| Exports of Services (million USD) | 7,899 | 10,233 | 11,884 | 10,762 | 12,752 |
| Imports of Goods and Services (Annual % Change) | 15.4 | 20.5 | 14.1 | -19.0 | 30.6 |
| Exports of Goods and Services (Annual % Change) | 7.3 | 9.1 | 1.2 | -6.4 | 17.2 |
| Imports of Goods and Services (in % of GDP) | 19.2 | 20.3 | 20.7 | 16.0 | 17.6 |
| Exports of Goods and Services (in % of GDP) | 24.8 | 24.6 | 24.5 | 21.4 | 22.3 |
| Trade Balance (million USD) | 13,958 | 13,456 | 15,423 | 18,526 | 14,266 |
| Trade Balance (Including Service) (million USD) | 13,458 | 12,943 | 14,138 | 17,369 | 13,414 |
| Foreign Trade (in % of GDP) | 44.0 | 45.0 | 45.1 | 37.4 | 39.8 |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| 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
Source: Comtrade, Last Available Data
Source: Worldwide Press Freedom Index 2010, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: January 2012