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