With a Gross Domestic Product (GDP) of approximately US$650 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. Argentina 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.
While Argentina’s economy expanded by 5% in 2022, the impact of a devastating drought is expected to result in a 2.5% negative growth in 2023. Growth is expected to accelerate in 2024, due to improved climatic conditions, continued historically high soybean prices and investments in the energy sector that will allow the country to reduce gas imports and improve external accounts.
The severe drought has deteriorated economic conditions and further amplified preexisting macro imbalances. Annual inflation accelerated in 2023, reaching 124 percent in August, affecting marginalized segments of the population. According to national statistics published in September 2023, poverty stands at 40.1% and extreme poverty stands at 9.1%..
Argentina is currently (since early 2022) under a 30-months Extended Fund Facility (EFF) with the International Monetary Fund (IMF). By end-August 2023 the IMF Executive Board completed the combined fifth and six review of the program, granting Argentina access to about US$7.5bn. Key program targets were missed through end-June 2023 on account of the historic drought. Modifications to the reserve accumulation target, as well as to the (nominal) primary fiscal balance and monetary financing of the deficit targets, were also approved alongside a commitment to implement a new policy package to correct policy setbacks, safeguard stability, and secure program objectives.
Last Updated: Oct 02, 2023