With a Gross Domestic Product (GDP) of approximately US$450 billion, Argentina is one of the largest economies in Latin America.
Argentina has vast natural resources in energy and agriculture. Within its 2.8 million square kilometers of territory, Argentina is endowed with extraordinary fertile lands, gas and lithium reserves, and has great potential for renewable energy. It is a leading food producer with large-scale agricultural and livestock industries. In addition, Argentina has significant opportunities in some manufacturing subsectors, and innovative services in high tech industries.
However, the historical volatility of economic growth and the accumulation of institutional obstacles have impeded the country’s development. Urban poverty in Argentina remains high and reaches 35,5% of population, while poverty in children rises to 52,3%.
To deal with this situation, the country has prioritized social spending through various programs, including the Universal Child Allowance, a cash transfer program that reaches approximately 4 million children and adolescents up to age 18, 9.3% of the population.
Financial turbulences in 2018 impacted the country and implied the revision of the economic plan and the need for a program with the International Monetary Fund (IMF). It started in 2018, for about US$ 57 billion, with the main objective of stabilizing public accounts to reach a primary fiscal balance at the end of 2019.
The economic situation presents a precarious balance. The Argentine peso has lost 68% of its value since 2018. Annual inflation is over 50% and after a 2.5% fall of GDP in 2018, the economy contracted an additional 2.2% in 2019.
Last Updated: Apr 15, 2020