Argentina Economy 2008

Economy - overview:
Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and a bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - the largest in history - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 9% annually over the subsequent five years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation, however, reached double-digit levels in 2006 and the government of President Nestor KIRCHNER responded with "voluntary" price agreements with businesses, as well as export taxes and restraints. Multi-year price freezes on electricity and natural gas rates for residential users stoked consumption and kept private investment away, leading to restrictions on industrial use and blackouts in 2007.

GDP (purchasing power parity):
$523.7 billion (2007 est.)

GDP (official exchange rate):
$245.6 billion (2007 est.)

GDP - real growth rate:
8.5% (2007 est.)

GDP - per capita (PPP):
$13,000 (2007 est.)

GDP - composition by sector:
agriculture: 6%
industry: 29%
services: 65% (2007 est.)

Labor force:
16.1 million
note: urban areas only (2007 est.)

Labor force - by occupation:
agriculture: 1%
industry: 23%
services: 76% (2007 est.)

Unemployment rate:
8.9% (2007 est.)

Population below poverty line:
23.4% (January-June 2007)

Household income or consumption by percentage share:
lowest 10%: 1%
highest 10%: 35% (January-March 2007)

Distribution of family income - Gini index:
49 (2006)

Inflation rate (consumer prices):
8.5% official rate; actual rate may be double the official rate (2007 est.)

Investment (gross fixed):
22% of GDP (2007 est.)

Budget:
revenues: $48.99 billion
expenditures: $46.87 billion (2007 est.)

Public debt:
59% of GDP (June 2007 est.)

Agriculture - products:
sunflower seeds, lemons, soybeans, grapes, corn, tobacco, peanuts, tea, wheat; livestock

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

Industrial production growth rate:
7% (2007 est.)

Electricity - production:
101.1 billion kWh (2005)

Electricity - consumption:
88.98 billion kWh (2005)

Electricity - exports:
4.14 billion kWh (2005)

Electricity - imports:
8.017 billion kWh (2005)

Oil - production:
801,700 bbl/day (2005 est.)

Oil - consumption:
480,000 bbl/day (2005 est.)

Oil - exports:
367,600 bbl/day (2004)

Oil - imports:
21,650 bbl/day (2004)

Oil - proved reserves:
2.32 billion bbl (1 January 2006 est.)

natural gas - production:
43.76 billion cu m (2005 est.)

natural gas - consumption:
38.79 billion cu m (2005 est.)

natural gas - exports:
6.646 billion cu m (2005 est.)

natural gas - imports:
1.669 billion cu m (2005)

natural gas - proved reserves:
512.4 billion cu m (1 January 2006 est.)

Current account balance:
$7.438 billion (2007 est.)

Exports:
$54.6 billion f.o.b. (2007 est.)

Exports - commodities:
soybeans and derivatives, petroleum and gas, vehicles, corn, wheat

Exports - partners:
Brazil 17.5%, Chile 9.5%, US 8.9%, China 7.5% (2006)

Imports:
$40.26 billion f.o.b. (2007 est.)

Imports - partners:
Brazil 34.8%, US 12.6%, China 9.1%, Germany 4.5% (2006)

Economic aid - recipient:
$99.66 million (2005)

Reserves of foreign exchange and gold:
$46.18 billion (31 December 2007 est.)

Debt - external:
$118 billion (30 September 2007)

Stock of direct foreign investment - at home:
$60.04 billion (2006 est.)

Stock of direct foreign investment - abroad:
$25.02 billion (2006 est.)

Market value of publicly traded shares:
$79.73 billion (2006)

Currency (code):
Argentine peso (ARS)

Exchange rates:
Argentine pesos per US dollar - 3.1105 (2007), 3.0543 (2006), 2.9037 (2005), 2.9233 (2004), 2.9006 (2003)