Argentina Economy
Economy - overviewArgentina 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 recurring economic 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 inflation picked up rapidly, but by mid-2002 the economy had stabilized, albeit at a lower level. Strong demand for the peso compelled the Central Bank to intervene in foreign exchange markets to curb its appreciation in 2003. Led by record exports, the economy began to recover with output up 8% in 2003, unemployment falling, and inflation reduced to under 4% at year-end.
GDP
purchasing power parity - $435.5 billion (2003 est.)
GDP - real growth rate
8.7% (2003 est.)
GDP - per capita
purchasing power parity - $11,200 (2003 est.)
GDP - composition by sector
agriculture: 11.1%
industry: 34.8%
services: 54.1% (2003 est.)
Investment
15.1% of GDP (2003)
Population below poverty line
51.7% (May 2003)
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
Inflation rate
13.4% (2003)
Labor force
14.92 million (2003)
Labor force - by occupation
agriculture NA, industry NA, services NA
Unemployment rate
17.3% (2003)
Budget
revenues: $26.62 billion
expenditures: $26 billion, including capital expenditures of NA (2003 est.)
Public debt
65.7% of GDP (2003 est.)
Agriculture - products
sunflower seeds, lemons, soybeans, grapes, corn, tobacco, peanuts, tea, wheat; livestock
Industries
food processing, motor vehicles, consumer durables, textiles, chemicals and petrochemicals, printing, metallurgy, steel
Industrial production growth rate
16.2% (2003 est.)
Electricity - production
97.17 billion kWh (2001)
Electricity - consumption
92.12 billion kWh (2001)
Electricity - exports
5.662 billion kWh (2001)
Electricity - imports
7.417 billion kWh (2001)
Oil - production
828,600 bbl/day (2001 est.)
Oil - consumption
486,000 bbl/day (2001 est.)
Oil - exports
NA (2001)
Oil - imports
NA (2001)
Oil - proved reserves
2.927 billion bbl (1 January 2002)
Natural gas - production
37.15 billion cu m (2001 est.)
Natural gas - consumption
31.1 billion cu m (2001 est.)
Natural gas - exports
6.05 billion cu m (2001 est.)
Natural gas - imports
0 cu m (2001 est.)
Natural gas - proved reserves
768 billion cu m (1 January 2002)
Current account balance
$7.855 billion (2003)
Exports
$29.57 billion f.o.b. (2003 est.)
Exports - commodities
edible oils, fuels and energy, cereals, feed, motor vehicles
Exports - partners
Brazil 15.8%, Chile 12%, US 10.6%, China 8.4%, Spain 4.7% (2003)
Imports
$13.27 billion f.o.b. (2003 est.)
Imports - commodities
machinery and equipment, motor vehicles, chemicals, metal manufactures, plastics
Imports - partners
Brazil 34%, US 16.4%, Germany 5.6%, China 5.2% (2003)
Reserves of foreign exchange & gold
$14.16 billion (2003)
Debt - external
$145.6 billion (2003 est.)
Currency
Argentine peso (ARS)
Currency code
ARS
Exchange rates
Argentine pesos per US dollar - 2.9003 (2003), 3.0633 (2002), 0.9995 (2001), 0.9995 (2000), 0.9995 (1999)
