Economic Trends/Outlook in Argentina
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 since 2004.
The social situation of the country is sensitive: unemployment and malnutrition persist, with
25% of the population living under the poverty line.
|GDP (billions USD)||310.17||370.27e||456.82e||526.30e||578.48e|
|GDP (Constant Prices, Annual % Change)||0.8||9.2e||6.0e||4.6e||4.2e|
|GDP per Capita (USD)||7,728e||9,138e||11,169e||12,749e||13,886e|
|General Government Balance (in % of GDP)||-1.6||-1.4e||-3.7e||-3.6e||-3.6e|
|General Government Gross Debt (in % of GDP)||57.6||47.8e||40.7e||36.7e||35.8e|
|Inflation Rate (%)||6.3||10.5e||10.2e||11.5e||11.0e|
|Unemployment Rate (% of the Labor Force)||8.7||7.7e||9.0e||8.5e||8.4e|
|Current Account (billions USD)||8.65e||9.52e||7.23e||9.32e||-|
|Current Account (in % of GDP)||2.8e||2.8e||2.0e||2.5e||-|
Source: IMF - World Economic Outlook Database
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)||0.8||23.7||75.2|
|Value Added (in % of GDP)||7.5||31.8||60.7|
|Value Added (Annual % Change)||-15.7||-1.2||1.4|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- Mostly unfree
- World Rank:
- Regional Rank:
Sources of General Economic Information
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
- Other Useful Resources
Asociación de Importadores y Exportadores de la República Argentina (AIERA)
- Main Online Newspapers
- Economic Portals
Portal of Argentina, Economic Section
Any Comments About This Content? Report It to Us.
Buoyed by strong growth in domestic production and investment, the Argentine economy has rebounded fast after dipping down to a meagre growth of 0.9% in 2009.
Hong Kong Trade Development Council (HKTDC) on 30 Jul 2012 related to Economic Trends/Outlook in Argentina
2012 Country Commercial Guide for U.S. Companies doing business in Argentina.
U.S. Commercial Service on 11 Jul 2012 related to Economic Trends/Outlook in Argentina
Government Trade Promotion, Hong Kong SAR
US GovTrade Promotion, the United States