Economy - overview Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Nevertheless, following decades of mismanagement and statist policies, the economy in the late 1980s was plagued with huge external debts and recurring bouts of hyperinflation. Elected in 1989, in the depths of recession, President MENEM has implemented a comprehensive economic restructuring program that has put Argentina on a path of stable, sustainable growth. Argentina's currency has traded at par with the US dollar since April 1991, and inflation has fallen to its lowest level in 50 years. Argentines have responded to price stability by repatriating capital and investing in domestic industry. Growth averaged more than 8% between 1991 and 1994, then fell 4.6% in 1995, largely in reaction to the Mexican peso crisis. The economy has since recovered strongly. However, unemployment remains nearly 14%, and Buenos Aires still depends on foreign capital to meet the bulk of its financing needs. The IMF has urged additional economic reforms to ensure equitable long-term growth.

GDP purchasing power parity - $348.2 billion (1997 est.)

GDP - real growth rate 8.4% (1997 est.)

GDP - per capita purchasing power parity - $9,700 (1997 est.)

GDP - composition by sector
agriculture: 7%
industry: 36%
services: 57% (1995 est.)

Inflation rate - consumer price index 0.3% (1997)

Labor force
total: 14.5 million (1995 est.)
by occupation: agriculture 12%, industry 31%, services 57% (1985 est.)

Unemployment rate 13.7% (October 1997)

Budget
revenues: $55 billion
expenditures: $59 billion, including capital expenditures of $NA (1997 est.)

Industries food processing, motor vehicles, consumer durables, textiles, chemicals and petrochemicals, printing, metallurgy, steel

Industrial production growth rate 8.7% (1997 est.)

Electricity - capacity 19.61 million kW (1995)

Electricity - production 65.72 billion kWh (1995)

Electricity - consumption per capita 1,960 kWh (1995)

Agriculture - products wheat, corn, sorghum, soybeans, sugar beets; livestock

Exports
total value: $25.4 billion (f.o.b., 1997)
commodities: meat, wheat, corn, oilseed, manufactures, fuels
partners: Brazil 26.1%, US 8.5%, Chile 7.0%, Netherlands 5.7%, Italy 3.5% (1995)

Imports
total value: $30.3 billion (c.i.f., 1997)
commodities: machinery and equipment, chemicals, metals, transport equipment, agricultural products
partners: Brazil 20.8%, US 20.7%, Italy 6.3%, Germany 6.2%, France 5.2% (1995)

Debt - external $115 billion (1997 est.)

Economic aid $NA

Currency 1 nuevo peso argentino = 100 centavos

Exchange rates pesos per US$1 - 0.99950 (January 1998), 0.99950 (1997), 0.99966 (1996), 0.99975 (1995), 0.99901 (1994), 0.99895 (1993)

Fiscal year calendar year

NOTE: The information regarding Argentina on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Argentina Economy 1998 information contained here. All suggestions for corrections of any errors about Argentina Economy 1998 should be addressed to the CIA.