Argentina Economy Profile 2009

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.

GDP (purchasing power parity)

$573.9 billion (2008 est.)
$537.3 billion (2007 est.)
$494.3 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$326.5 billion (2008 est.)

GDP - real growth rate

6.8% (2008 est.)
8.7% (2007 est.)
8.5% (2006 est.)

GDP - per capita (PPP)

$14,200 (2008 est.)
$13,400 (2007 est.)
$12,500 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 9.9%
industry: 32.7%
services: 57.4% (2008 est.)

Population below poverty line

23.4% (January-June 2007)

Labor force

16.27 million
note: urban areas only (2008 est.)

Labor force - by occupation

agriculture: 1%
industry: 23%
services: 76% (2008 est.)

Unemployment rate

7.9% (September 2008)
8.5% (2007 est.)

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)

Investment (gross fixed)

23.2% of GDP (2008 est.)

Budget

revenues: $86.65 billion
expenditures: $82.85 billion (2008 est.)

Public debt

48.4% of GDP (2008 est.)
118% of GDP (June 2004 est.)

Inflation rate (consumer prices)

8.6% (2008 est.)
8.8% (2007 est.)
note: based on official estimates, which lack credibility; non-official estimates put inflation at 22% in 2008

Central bank discount rate

NA

Commercial bank prime lending rate

NA% (31 December 2008)
28% (28 November 2008)

Stock of money

$NA (31 December 2008)
$33.93 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$45.92 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$72.55 billion (31 December 2007)

Industries

food processing, motor vehicles, consumer durables, textiles, chemicals and petrochemicals, printing, metallurgy, steel

Industrial production growth rate

4.3% (2008 est.)

Electricity - production

109.4 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 52.2%
hydro: 40.8%
nuclear: 6.7%
other: 0.2% (2001)

Electricity - consumption

97.72 billion kWh (2006 est.)

Electricity - exports

2.628 billion kWh (2007 est.)

Electricity - imports

10.27 billion kWh (2007 est.)

Oil - production

790,800 bbl/day (2007 est.)

Oil - consumption

440,000 bbl/day (2007 est.)

Oil - imports

23,380 bbl/day (2005)

Oil - exports

339,900 bbl/day (2005)

Oil - proved reserves

2.186 billion bbl (1 January 2008 est.)

Natural gas - production

44.8 billion cu m (2007 est.)

Natural gas - consumption

44.1 billion cu m (2007 est.)

Natural gas - exports

2.6 billion cu m (2007 est.)

Natural gas - imports

1.9 billion cu m (2007 est.)

Natural gas - proved reserves

446 billion cu m (1 January 2008 est.)

Current Account Balance

$7.588 billion (2008 est.)
$7.103 billion (2007 est.)

Agriculture - products

sunflower seeds, lemons, soybeans, grapes, corn, tobacco, peanuts, tea, wheat; livestock

Exports

$70.59 billion (2008 est.)
$55.78 billion (2007 est.)

Exports - commodities

soybeans and derivatives, petroleum and gas, vehicles, corn, wheat

Exports - partners

Brazil 22.3%, China 11.4%, US 7.6%, Chile 6%, Spain 4.1% (2008)

Imports

$54.55 billion (2008 est.)
$42.53 billion (2007 est.)

Imports - commodities

machinery, motor vehicles, petroleum and natural gas, organic chemicals, plastics

Imports - partners

Brazil 32.7%, US 15.3%, China 11.5%, Germany 5.5% (2008)

Reserves of foreign exchange and gold

$46.37 billion (31 December 2008 est.)
$46.12 billion (31 December 2007 est.)

Debt - external

$128.2 billion (31 December 2008)
$124 billion (31 December 2007)

Stock of direct foreign investment - at home

$73.98 billion (31 December 2008 est.)
$66 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$28.42 billion (31 December 2008 est.)
$26.92 billion (31 December 2007 est.)

Market value of publicly traded shares

$52.31 billion (31 December 2008)
$86.68 billion (31 December 2007)
$79.73 billion (31 December 2006)

Economic aid - recipient

$99.66 million (2005)

Currency (code)

Argentine peso (ARS)

Currency (code)

ARS

Exchange rates

Argentine pesos (ARS) per US dollar - 3.1636 (2008 est.), 3.1105 (2007), 3.0543 (2006), 2.9037 (2005), 2.9233 (2004)

Fiscal year

calendar year