With a Gross Domestic Product (GDP) of more than US$ 540 billion, Argentina is one of the largest economies in Latin America. In recent years, the country has focused on economic development with social inclusion.

Argentina's economy enjoys valuable natural resources. It is a leading food producer with large-scale agricultural and livestock industries. It is among the world’s largest beef and soybean exporters and is the leading producer of sunflower seeds, yerba mate, lemons and soybean oil. The opening of the Chinese market has helped boost the country’s export potential.

The country is pursuing an active foreign policy agenda and represents Latin America in the G-20, together with Mexico and Brazil.

The economy enjoyed significant growth over the past decade. Argentina invested heavily in health and education, areas which account for 7% and 6% of GDP, respectively.

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. As of 2014, 12.7% lived in poverty – defined as living on under $4 a-day. A third of the population lives on between 4 and 10 dollars a day and remains at risk of falling back into 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.

The government is currently restructuring its national statistics agency and has stopped publishing a number of key indicators. The latest data on economic activity dates back to the second quarter of 2015. According to those figures, economic activity picked up during the first half of 2015, mostly led by public consumption, and increased 2.1% and 2.3% (yoy) in the first and second quarter, respectively.

The primary deficit expanded to 5.4% of GDP in 2015, up from 3.8% in 2014. The Government has announced plans to reduce the primary deficit to 4.8% of GDP by the end of this year, 3.3% by 2017, 1.8% by 2018 and 0.3% by 2019.

Last Updated: Mar 28, 2016

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 new 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: Mar 28, 2016

Argentina currently has a portfolio of 23 investment projects with US$ 5.9 billion in committed loans and five grants from the Global Environment Facility (GEF) for US$ 6.1 million. The portfolio concentrates on programs in health, environment, education, infrastructure, the labor market and social protection.

In the framework of the new strategy, approved projects include the following: the second Project to Improve Rural Education (US$ 250 million), which will benefit more than one million students and teachers in rural areas;  Support to Youth Employment (US$ 425 million), which promotes the employment of some 540,000 vulnerable youth; Renewable Energy for Rural Areas (PERMER II, US$ 200 million), which works to expand access of isolated rural populations to alternative energy;   Native Forests and Community Project (US$ 58.7 million), which supports sustainable forest management in the Gran Chaco zone; and Protecting the Vulnerable Population from Chronic Non-Communicable Diseases project (US$350 million) that seeks to improve the access to control and prevention services among 3.2 million adults aged between 40 and 64.

In the northern provinces of Catamarca, Chaco, Corrientes, Formosa, Jujuy, Misiones, Salta, Tucumán and Santiago del Estero, a region that is home to 7.5 million people, the World Bank has provided US$ 800 million for water and road infrastructure projects that form part of the National Government’s Norte Grande Development Program.

Social safety nets are the focus of a US$ 480 million loan for the Basic Social Protection Plan, which aims to increase the effectiveness of Argentina's conditional cash transfer programs for the unemployed and families with children under age 18: the Training and Employment Insurance (SCE) and family allowances, including the Universal Child Allowance.

Health care is supported by the US$ 400 million Plan Sumar to improve access to health services for the nearly 70% of the population without health insurance, with an emphasis on children, adolescents and low-income women through conditional cash transfers. Moreover, thanks to an additionalUS$200 million of financing, men under 65 without coverage will benefit for the first time. T

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.

Throughout the country, some 70,000 small and medium-scale farmers—one-third of all farmers— 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 investment in services in rural areas.

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

Last Updated: Mar 28, 2016


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

*Amounts include IBRD and IDA commitments