Country Office Contacts
ARGENTINA +5411 4316-9700

Bouchard 547, piso 29 CP1106. Buenos Aires
ccrerar@worldbank.org

USA +1 202 473-1000

1818 H Street NW, Washington, DC 20433
ccrerar@worldbank.org

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Argentina Overview

With a Gross Domestic Product (GDP) of more than US$490 billion Argentina is one of the largest economies in Latin America. In recent years, President Cristina Fernandez has focused on promoting economic development with social inclusion.

On the international front, Argentina enjoys good relations with most of the countries in the region, particularly Brazil and Venezuela. The country also has a leading role in advocating the region's policy stance, as it represents Latin America at the G-20, jointly with Mexico and Brazil.

Argentina's economy is characterized by its valuable natural resources, leading the country to be one of the main producers of food, thanks to agriculture and cattle breeding. Argentina is one of the largest exporters of beef in the world and the top world producer of sunflower crops, yerba mate, lemons, and soybean oil. The opening of the Chinese market represents a boost in the consolidation of an export profile.

In recent years, moreover, the country experienced record growth within the domestic industry, particularly in the automotive, textile, and appliances industries.

The country has grown steadily during the past decade and has invested heavily in health and education, areas which account for 8% and 6% of GDP respectively. Between 2003 and 2009, the middle class doubled from 9.3 million to 18.6 million (equivalent to 45 % of the population).

It has prioritized social spending through various programs, including the creation of the Universal Child Allowance, which reaches approximately 3.7 million children and adolescents up to 18 years old, 9.3% of the population.

In recent months, the economy's external sector faces significant challenges. In 2013, Argentina had a primary deficit of 0.9% of GDP and an overall deficit of 2.5% of GDP. Revenue increased by 30.4% (yoy) and expenditure by 29.1% (yoy). According to new estimates, GDP growth rate for 2013 was 3% (base year 2004). In this context, the forecasts for the growth rate for 2014 range from 0.9% to 2.5%.

Last Updated: Apr 09, 2014

The World Bank is currently working with the Argentinean government in developing a new Country Partnership Strategy (CPS). Currently, active projects address three key areas:

  • Sustainable growth with equity
  • Social inclusion
  • Improved governance

In a nutshell, the portfolio is focused on the following goals:

  • Upgrade infrastructure to address potential bottlenecks to competitiveness and to underpin medium-term growth and poverty alleviation.
  • Improve competitiveness, quality, and exports of agriculture and livestock production.
  • Address a growing problem of natural resource degradation.
  • Consolidate and expand progress in reducing poverty by increasing household incomes and integrating marginalized groups into the productive marketplace.
  • Consolidate improvements in health indicators.
  • Strengthen the effectiveness, efficiency, transparency and accountability of the public sector.
  • Expand performance management and improve the quality of public expenditure
  • Enhance service delivery outcomes and trust in institutions.
Last Updated: Apr 09, 2014

Argentina currently has a portfolio of 20 projects totaling US$4.9 billion in credits and four important GEF donations of US$28.6 million. The World Bank's involvement includes a wide array of projects in areas such as environment, health, education, infrastructure, social protection and labor, among others.

The provinces of Catamarca, Chaco, Corrientes, Formosa, Jujuy, Salta, Tucumán and Santiago del Estero, which as a group are home to 7.5 million people, receive the support of the Norte Grande National Development Program, including World Bank financing of US$800 million for a Water Project and a Road Project.

Social safety nets are the focus of a financing of US$480 million for the Basic Protection Project, which aims to increase the effectiveness of Argentina's income transfer programs for the unemployed and families with children, including the Universal Child Allowance.

The Provincial Public Health Insurance Development Project (US$400 million) will improve access to health coverage for 70% of people without health insurance. This initiative complements Plan Nacer, which emphasizes performance based transfers in Argentina's health system, with immediate attention to the health needs of poor mothers and children. Finally, the Essential Public Health Functions project (U$461 million) focuses on seven health programs including chronic diseases, safe blood, HIV and others.

In the environmental area, the Matanza-Riachuelo Basin Sustainable Development Project provides $840 million in assistance to clean up the notoriously polluted river basin by improving sewage services and expanding treatment capacity.

In the City of Buenos Aires, the Bank supports the main hydraulic works, through the Urban Flood Prevention and Drainage Project (US$130 million), which has improved the ability of Arroyo Maldonado drainage system to prevent flooding in several neighborhoods of the city.

The Program to Promote Productive Innovation seeks to improve Argentina's knowledge industry by supporting highly skilled human capital and new knowledge-based enterprises.

Around 70,000 small and medium producers —over one third of the total number— are benefiting from initiatives such as the Second Provincial Agricultural Development Project (PROSAP), which provides US$300 million in assistance to support new public infrastructure and services investment in rural areas.

Road systems feature prominently in the World Bank's Argentina portfolio. A US$150 million plan dubbed Provincial Road Infratructure supports road investment programs at the provincial level in Chubut, Corrientes, Cordoba, Entre Ríos, Neuquén and Santa Fe. The project will rehabilitate and maintain some 2,200 km of road through CREMA contracts; rehabilitate and/or pave 270 km through traditional admeasurements contracts; and develop a routine maintenance program for some 9,400 km.

Additionally, the US$30 million Road Safety Project has reduced the rate of injuries and fatalities in traffic accidents by strengthening the country's institutional framework and management capacity of road safety.

 

Last Updated: Apr 09, 2014

LENDING

Argentina: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments

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