Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). Find Out

Skip to Main Navigation

Overview

  • Argentina is one of the largest economies in Latin America with a Gross Domestic Product (GDP) of approximately US$450 billion.

    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. The COVID.-19 pandemic and social isolation as a way to combat it aggravated the situation. Urban poverty in Argentina remains high and in the first semester it reached 40,9% of population, while extreme poverty increased to 10,5% and children poverty rose  to 56,3%.

    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.

    After two years of recession and strong economic weaknesses, the impact of COVID-19 has been significant in Argentina. During the second quarter of 2020, the country suffered a decline in GDP of 16.2%, the largest retraction in its history.

    To counteract the impacts of the crisis, the Government has implemented a package of emergency measures to protect the most vulnerable groups and help companies during the social isolation. This program has a  high fiscal cost, which is expected to bring the fiscal deficit in 2020 to more than 10% of GDP (the highest in more than three decades).

    Domestic economy continues to show strong macroeconomic imbalances. Annual inflation, although it has slowed since the beginning of the year, is still above 40%, despite price controls.

    The Government has managed to conclude the process of restructuring all its debt in foreign currency (both local and external), significantly improving the maturity profile for the next eight years. In turn, the authorities have formally begun to talk with the International Monetary Fund to agree a new program for the maturities of the Stand-By loan in the next 3 years.

    Last Updated: Oct 14, 2020

  • 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: Oct 14, 2020

  • Argentina has an active portfolio of 22 investment projects with USS6.2 billion in committed loans, a guarantee for US$466 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 the last year, the World Bank Board of Directors approved several projects, among which are:

    • A US$ 35 million emergency loan to support government efforts to minimize the impact of the coronavirus pandemic (COVID-19) on the health system through the purchase of medical supplies and equipment.
    • An additional financing for the Child and Youth Protection Project (US$ 300 million), with the aim of minimizing the impact of the crisis on the most vulnerable and reaching 350,000 children who are not yet included in family allowance programs;
    • 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.

    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 14, 2020

Api


LENDING

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

*Amounts include IBRD and IDA commitments


PHOTO GALLERY

More Photos Arrow

Additional Resources

Country Office Contacts

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