Argentina Economy Profile 2006

Economy - overview

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Over the past decade, however, the country has suffered problems of inflation, external debt, capital flight, and budget deficits. Growth in 2000 was a negative 0.8%, as both domestic and foreign investors remained skeptical of the government's ability to pay debts and maintain the peso's fixed exchange rate with the US dollar. The economic situation worsened in 2001 with the widening of spreads on Argentine bonds, massive withdrawals from the banks, and a further decline in consumer and investor confidence. Government efforts to achieve a "zero deficit," to stabilize the banking system, and to restore economic growth proved inadequate in the face of the mounting economic problems. The peso's peg to the dollar was abandoned in January 2002, and the peso was floated in February. The exchange rate plunged and real GDP fell by 10.9% in 2002, but by mid-year the economy had stabilized, albeit at a lower level. GDP expanded by about 9% per year from 2003 to 2005. Growth is being led by a revival in domestic demand, solid exports, and favorable external conditions. The government boosted spending ahead of the October 2005 midterm congressional elections, but strong revenue performance allowed Argentina to maintain a budget surplus. Inflation has been rising steadily and reached 12.3 percent in 2005.

GDP (purchasing power parity)

$543.4 billion (2005 est.)

GDP (official exchange rate)

$182 billion (2005 est.)

GDP - real growth rate

9.2% (2005 est.)

GDP - per capita (PPP)

$13,700 (2005 est.)

GDP - composition by sector

agriculture: 9.5%
industry: 35.8%
services: 54.7% (2004 est.)

Population below poverty line

38.5% (June 2005)

Household income or consumption by percentage share

lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices)

9.6% (2005 est.)

Investment (gross fixed)

21.5% of GDP (2005 est.)

Labor force

15.34 million (2005 est.)

Labor force - by occupation

agriculture: NA%
industry: NA%
services: NA%

Unemployment rate

11.6% (2005 est.)

Distribution of family income - Gini index

52.2 (2001)

Budget

revenues: $42.63 billion
expenditures: $39.98 billion; including capital expenditures of $NA (2005 est.)

Public debt

72.5% of GDP (2005 est.)

Industries

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

Industrial production growth rate

7.7% (2005 est.)

Electricity - production

87.16 billion kWh (2004)

Electricity - consumption

82.97 billion kWh (2004)

Electricity - exports

2.07 billion kWh (2004)

Electricity - imports

1.561 billion kWh (2004)

Oil - production

745,000 bbl/day (2005 est.)

Oil - consumption

450,000 bbl/day (2001 est.)

Oil - imports

NA bbl/day

Oil - exports

NA bbl/day

Oil - proved reserves

2.95 billion bbl (2005 est.)

Natural gas - production

41.04 billion cu m (2003 est.)

Natural gas - consumption

34.58 billion cu m (2003 est.)

Natural gas - exports

6.05 billion cu m (2001 est.)

Natural gas - imports

0 cu m (2001 est.)

Natural gas - proved reserves

663.5 billion cu m (2005)

Current Account Balance

$5.448 billion (2005 est.)

Agriculture - products

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

Exports

$40 billion f.o.b. (2005 est.)

Exports - commodities

edible oils, fuels and energy, cereals, feed, motor vehicles

Exports - partners

Brazil 15.3%, US 10.8%, Chile 10.5%, China 8.3% (2005)

Imports

$28.8 billion f.o.b. (2005 est.)

Imports - commodities

machinery and equipment, motor vehicles, chemicals, metal manufactures, plastics

Imports - partners

Brazil 34.6%, US 16.8%, China 5.4%, Germany 5.3% (2005)

Reserves of foreign exchange and gold

$28.09 billion (2005 est.)

Debt - external

$118.2 billion (2005 est.)

Economic aid - recipient

$10 billion (2001 est.)

Currency (code)

Argentine peso (ARS)

Exchange rates

Argentine pesos per US dollar - 2.9037 (2005), 2.9233 (2004), 2.9006 (2003), 3.0633 (2002), 0.9995 (2001)

Fiscal year

calendar year