Overview

  • With a Gross Domestic Product (GDP) of more than US$600 billion, Argentina is one of the largest economies in Latin America. Argentina is currently undergoing an economic transformation that promotes sustainable economic development with social inclusion and integration into the global economy.

    Argentina has vast natural resources in energy and agriculture. Within its 2.8 million square kilometers of territory, Argentina is endowed with extraordinary fertile lands and has great potential for renewable energy. It is a leading food producer with large-scale agricultural and livestock industries.  In addition, Argentina has significant opportunities in some manufacturing subsectors, and innovative services in high tech industries.

    Argentina was the top performer in the region in reducing poverty and boosting shared prosperity between 2004 and 2008. Incomes of the bottom 40% grew at an annualized rate of 11.8% compared to average income growth of 7.6%. This trend continued but slowed after 2008. In the first half of 2017, according to official statistics, 28.6% lived in poverty, while 6.2% were in extreme poverty.

    The country prioritized social spending through various programs, including the Universal Child Allowance, which reaches approximately 3.7 million children and adolescents up to age 18, 9.3% of the population.

    Presidential elections at the end of 2015 led to a significant change in Argentine economic policy. The new administration has moved with significant speed to implement core reforms such as the unification of the exchange rate, the agreement with international creditors, the modernization of the import regime, reduction of inflation and reform of national statistics system.

    In addition, Argentina has taken a very active role on the international stage and will hold the presidency of the G20 in 2018, expressing intention to join the OECD and become an observer in the Pacific Alliance.

    After an economic contraction of 2.2% in 2016, concentrated in the first half of the year, the economy began to recover. In fact, GDP grew 2.7% year-on-year in the first half of 2017 and is expected to continue this process in the second part of the year.

    The primary deficit for 2016 was 4.3% of GDP, compared to 4% in 2015. The primary deficit accumulated in August 2017 is 1.9% of GDP, below the previous year's record and the officially stated objectives. The Government plans a gradual convergence to a primary fiscal balance by 2021.

    Last Updated: Oct 05, 2017

  • The WBG strategy is built around three broad themes:

    • (a) sustained employment creation in farms and firms
    • (b) improving availability of assets for people and households
    • (c) reducing environmental risks and safeguarding natural resources

    These thematic areas were selected for their contribution to achieving sustained poverty reduction and shared prosperity.

    Some emblematic programs will contribute to reduce average transit time to city centers from poor neighborhoods in two metropolitan areas by 15%; or to increase by 12% the gross value of agricultural production ($/ha) of 80,000 small and medium-size farms in lower-income areas; and will support an increase in effective national healthcare coverage from 28% to 50%. 

    The strategy focuses on working with the country’s poorest provinces and in large urban areas.  There will be support for programs designed to increase the employability of young people through training, apprentice programs and corporate partnerships. In large cities, the strategy will promote activities that include logistics solutions, urban transport, basic services, skills development and governance in communities and low-income municipalities.

    Last Updated: Oct 05, 2017

  • Argentina currently has a portfolio of 22 investment projects with US$6.6 billion in committed loans, a guarantee of US$480 million, and four grants totaling US$16 million. The portfolio concentrates on programs in health, environment, education, infrastructure, the labor market and social protection.

    In the framework of the strategy, the Board of Directors approved in 2017 7 projects totaling US$1.4 billion, including a guarantee.

    More than 450,000 people in ten provinces in northern Argentina will have access to improved water and sanitation services thanks to the Belgrano Plan, supported by a US$125 million loan. In addition, more than 1.4 million people will benefit from a new US$300 million project to strengthen flood protection in the Salado River Basin in the Province of Buenos Aires.

    At the urban level, two projects aim to improve basic services in disadvantaged neighborhoods and improve access to formal housing throughout the country. The US$200 million Integrated Habitat and Housing Project is supporting the first national housing subsidy program (Línea Solución Casa Propia). Simultaneously, it will seek to improve living conditions in informal settlements through better infrastructure, public services and social programs.    The US$200 million Urban Transformation Project in the Buenos Aires Metropolitan Area seeks better housing conditions and access to basic services and infrastructure in disadvantaged neighborhoods of the Buenos Aires Metropolitan Area (such as Villa 31 in the City of Buenos Aires).

    Improved quality and accessibility of selected government administrative services and enhanced transparency of the public administration are two main goals for the "Project for Modernization and Innovation of Public Services" (US$80 million).

    More than 600,000 public transport users in the Metropolitan Area of ​​Buenos Aires will benefit from additional funding of US$45 million for the Metropolitan Areas Urban Transport Project (PTUMA), which is financing a new bus corridor (Metrobus) in the province of Buenos Aires and a transfer center in the south of the City of Buenos Aires.

    In order to get 20 percent of Argentina's energy from clean sources by 2025, a US$480 million guarantee was put in place to support the Fund for the Development of Renewable Energies (FODER). The development of renewable energy in Argentina is key to diversify the energy matrix and contribute to climate change mitigation.

    Other exemplary projects are: the expansion of the Universal Child Allowance Program (AUH), to include an additional 1.5 million children (US $ 600 million); strengthening of flood risk management in Buenos Aires City that will improve drainage systems to benefit three million people (US$200 million); the Forests and Community Project (US$58.7 million) that supports sustainable forest management in the Gran Chaco ecoregion; and the Protecting the Vulnerable Population from Chronic Non-Communicable Diseases project (US$350 million) that seeks to improve access to health control and prevention services among 3.2 million adults aged between 40 and 64.

    In the environmental area, the Matanza-Riachuelo Basin Sustainable Development Project provides US$ 718 million in assistance to clean up the river basin by improving sewage services and expanding water treatment capacity.

    The World Bank is also carrying out a number of analytical studies to help achieve sustained poverty reduction in Argentina. The latest reports focus on topics such as agriculture, environment, pensions, subsidies, and cities, among others. 

    Latest Reports: 

     

    Last Updated: Oct 05, 2017

Api




PHOTO GALLERY

More Photos Arrow

Additional Resources

Country Office Contacts

ARGENTINA +5411 4316-9700
Bouchard 547, piso 29 CP1106. Buenos Aires
sip@worldbank.org