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Argentina Economy Profile 2018

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Economy - overviewArgentina 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. In 2016, the World Bank downgraded Argentina from a high-income to upper-middle-income economy, on par with Columbia.

A severe depression, growing public and external indebtedness, and an unprecedented 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 - at the time the largest ever - 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 below 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, 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 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 in 2010 rebounded strongly from the 2009 recession, but slowed in late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which kept inflation in the double digits.

In order to deal with these problems, the government expanded state intervention in the economy: it nationalized the oil company YPF from Spain's Repsol, expanded measures to restrict imports, and further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. Between 2011 and 2013, Central Bank foreign reserves dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.

With the election of President Mauricio MACRI in November 2015, Argentina began a historic political and economic transformation, as his administration took steps to liberalize the Argentine economy, lifting capital controls, floating the peso, removing export controls on some commodities, cutting some energy subsidies, and reforming the country’s official statistics. Argentina negotiated debt payments with holdout bond creditors and returned to international capital markets in April 2016. In September 2016, Argentina completed its first IMF Article IV Consultation since 2006.

After years of international isolation, Argentina took on several international leadership roles in 2017, including hosting the World Economic Forum on Latin America and the World Trade Organization Ministerial Conference, and is set to assume the presidency of the G-20 in 2018.
GDP (purchasing power parity)$911.5 billion (2017 est.)
$889.5 billion (2016 est.)
$910 billion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)$619.9 billion (2016 est.)
GDP - real growth rate2.5% (2017 est.)
-2.2% (2016 est.)
2.6% (2015 est.)
GDP - per capita (PPP)$20,700 (2017 est.)
$20,400 (2016 est.)
$21,100 (2015 est.)
note: data are in 2017 dollars
Gross national saving12.8% of GDP (2017 est.)
13.6% of GDP (2016 est.)
14.2% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 66.5%
government consumption: 18%
investment in fixed capital: 15.3%
investment in inventories: 1.5%
exports of goods and services: 12%
imports of goods and services: -13.4% (2017 est.)
GDP - composition by sectoragriculture: 10.9%
industry: 28.2%
services: 60.9% (2017 est.)
Population below poverty line32.2%
note: data are based on private estimates (2016 est.)
Labor force18 million
note: urban areas only (2017 est.)
Labor force - by occupationagriculture: 0.5%
industry: 24.8%
services: 74.7% (2014 est.)
Unemployment rate8.1% (2017 est.)
8.5% (2016 est.)
Unemployment, youth ages 15-24total: 18.3%
male: 15.6%
female: 22.8% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 1.6%
highest 10%: 30.8% (2014 est.)
Distribution of family income - Gini index42.7 (2014)
45.8 (2009)
Budgetrevenues: $123.2 billion
expenditures: $161.1 billion (2017 est.)
Taxes and other revenues19.9% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-6.1% of GDP (2017 est.)
Public debt53.7% of GDP (2017 est.)
54.5% of GDP (2016 est.)
Inflation rate (consumer prices)26.9% (2017 est.)
26.5% (2015 est.)
note: data are derived from private estimates
Central bank discount rateNA%
Commercial bank prime lending rate24.5% (31 December 2017 est.)
31.23% (31 December 2016 est.)
Stock of narrow money$62.95 billion (31 December 2017 est.)
$59 billion (31 December 2016 est.)
Stock of broad money$166.9 billion (31 December 2017 est.)
$146.5 billion (31 December 2016 est.)
Stock of domestic credit$216.7 billion (31 December 2017 est.)
$194 billion (31 December 2016 est.)
Market value of publicly traded shares$56.13 billion (31 December 2015 est.)
$60.14 billion (31 December 2014 est.)
$53.1 billion (31 December 2013 est.)
Agriculture - productssunflower seeds, lemons, soybeans, grapes, corn, tobacco, peanuts, tea, wheat; livestock
Industriesfood processing, motor vehicles, consumer durables, textiles, chemicals and petrochemicals, printing, metallurgy, steel
Industrial production growth rate2.4%
note: based on private sector estimates (2017 est.)
Current Account Balance-$22.13 billion (2017 est.)
-$14.9 billion (2016 est.)
Exports$59.69 billion (2017 est.)
$57.78 billion (2016 est.)
Exports - commoditiessoybeans and derivatives, petroleum and gas, vehicles, corn, wheat
Exports - partnersBrazil 15.5%, US 7.7%, China 7.6%, Vietnam 4.4% (2016)
Imports$60.78 billion (2017 est.)
$53.24 billion (2016 est.)
Imports - commoditiesmachinery, motor vehicles, petroleum and natural gas, organic chemicals, plastics
Imports - partnersBrazil 24.3%, China 18.7%, US 12.5%, Germany 5.5% (2016)
Reserves of foreign exchange and gold$52.97 billion (31 December 2017 est.)
$38.43 billion (31 December 2016 est.)
Debt - external$208.6 billion (31 December 2017 est.)
$190.2 billion (31 December 2016 est.)
Stock of direct foreign investment - at home$84.14 billion (31 December 2017 est.)
$72.11 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad$40.94 billion (31 December 2017 est.)
$39.74 billion (31 December 2016 est.)
Exchange ratesArgentine pesos (ARS) per US dollar -
16.92 (2017 est.)
14.7582 (2016 est.)
14.7582 (2015 est.)
9.2332 (2014 est.)
8.0753 (2013 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on January 20, 2018

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