Economic Trends/Outlook in Argentina

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Economic Overview

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.

Main Indicators 2009 2010 2011 2012 2013
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.

For more detailed background on Industries in Argentina, click here.

Indicator of Economic Freedom

Mostly unfree
World Rank:
Regional Rank:

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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