Overview

  • With a Gross Domestic Product (GDP) of approximately US$470 billion, Argentina is one of the largest economies in Latin America. 

    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, gas and lithium reserves, 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.

    However, the historical volatility of economic growth and the accumulation of institutional obstacles have impeded the country’s development. Urban poverty in Argentina remains high and reaches 35,4% of population, while poverty in children rises to 52,6%.

    To deal with this situation, the country has prioritized social spending through various programs, including the Universal Child Allowance, a cash transfer program that reaches approximately 4 million children and adolescents up to age 18, 9.3% of the population.

    In 2018, Argentina was hit hard by a series of external and internal factors including a severe drought, global financial volatility in emerging markets following the Fed’s adjustment of the interest rate, and market perceptions on the pace of fiscal reforms. The country announced a program with the International Monetary Fund (IMF) worth US$57 billion, with the aim to stabilize public accounts to reach a primary fiscal balance by end of 2019.

    Argentina is currently in a precarious economic balance. The peso devalued significantly in 2019, annual inflation is over 50% and GDP has contracted 2.5% in 2018, and another 2,5% in the first half of 2019.

    Last Updated: Oct 16, 2019

  • The World Bank is a long-term strategic partner of Argentina. The Country Partnership Framework (CPF) for 2019-2022 seeks to contribute to reducing poverty through promoting sustainable and inclusive growth.

    The main areas of work are: 

    1. Supporting the country in the creation of long-term private financing sources

    The WBG supports fiscal consolidation and the strengthening of market institutions (such as competition, trade and investment frameworks), promote productivity-led growth and an increase in exports. The development of a nascent local capital market and the mobilization of financing for key investments are also strategic priorities, together with the strengthening of the social safety net. 

    2. Contributing to improving public sector management and service provision

    Enhancing the efficiency of public administration is another key area of the strategy. It will do so by seeking to strengthen inter-jurisdictional coordination with the goal of improving basic public service delivery such as water and sanitation. Moreover, it prioritizes the education sector, with the aim of improving learning outcomes in secondary education and skills building capacity to enter the labor market. It continues also to support the implementation of a universal healthcare coverage system in the provinces.

    3. Promoting actions to reduce the country’s vulnerability to climate change

    In terms of climate change, the CPF supports the transition to a low carbon economy, increasing electricity generation from renewable sources and promoting the adoption of climate smart agricultural practices. At the urban level, it seeks to increase urban resiliency by  promoting the use of electric buses. 

    Last Updated: Apr 08, 2019

  • Argentina has an active portfolio of 26 investment projects with USS7.7 billion in committed loans, two guarantees for US$730 million and two grants for an amount of US$10 million. The portfolio focuses on supporting programs in the areas of health, environment, education, infrastructure, labor market and social protection.

    During 2019, the World Bank Board approved several projects, among which are:

    • “Supporting the Electricity Social Tariff Transition in the Province of Buenos Aires”, of US$150 million, which will guide the transition of the subsidy from the national to the provincial level as well as improve the identification and monitoring of beneficiaries to guarantee that the most vulnerable population is covered.

    • An additional financing of US$ 245 million to continue the sanitation of the Matanza-Riachuelo basin, through sewerage works, reduction of industrial pollution and flood control, in order to improve the quality of life of 4.3 million of inhabitants.

    • “Improving Inclusion in secondary and higher education”, of US$341 million, that supports initiatives aimed at reducing dropout rates in compulsory and higher education and strengthening evaluation systems.

    • An additional financing of US$100 million to the Metropolitan Buenos Aires Urban Transformation Project to improve the living conditions and basic services of 26,000 inhabitants of vulnerable neighborhoods. This new project adds to the improvements in basic infrastructure that are being implemented in Barrio 31 in the City of Buenos Aires.

    In addition, the World Bank continues to implement the Children and Youth Protection Project (US$ 1 billion), with the objective of reaching 250,000 children who are not yet included in family allowance programs; and the Supporting Effective Universal Health Coverage Project (US$ 300 million) which promotes equitable access of 15 million people to quality health services.

    In order to get 20 percent of Argentina's energy from clean sources by 2025, two guarantees of US$730 million were 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.

    In the rural area, several projects stand out: the Integrated Risk Management in the Rural Agroindustrial System Project (US$ 150 million), which aims for 20,000 vulnerable producers to increase their resilience to climate events, such as droughts and floods, and the Renewable Energy Project in Rural Areas (US$ 200 million), which seeks that isolated communities access electricity through clean energy. In the north of the country, about 900,000 inhabitants are improving road connectivity thanks to the Northwest Development Corridor Road Project (US$300 million)

    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 16, 2019

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LENDING

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

*Amounts include IBRD and IDA commitments


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Additional Resources

Country Office Contacts

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