Argentina

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Sunk in recession from 1998, Argentina found itself bankrupt in 2001. The Argentinian economy started recovering from 2003. Between 2004 and 2007, GDP growth rate was high, however, the country was affected by the financial crisis of 2008. Growth prospects for the future appear to be lower. Household consumptions, which dynamized economic growth are expected to decline. Cristina Kirchner's government will continue to distance itself from the market liberalization policies carried out during the 1990s and prefers to have the state to play a more interventionist role in the economy. As for inflation, it should stay under control despite an upward trend.

The social consequences of the 2001 economic crisis are still ever present and the Argentinian economy is structurally fragile; the financial system is weak, the social situation is sensitive (unemployment and malnutrition persist, 25% of the population lives under the poverty threshold), and the country is facing an energy crisis. Nevertheless, Argentina has all the necessary assets to weather the difficulties. Its flourishing agriculture which is directed towards export attracts foreign investmets, its natural resources are significant (copper, gas and oil) and its work force is qualified and competitive.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	212.71	260.40	326.47	310.33	312.19
GDP (constant prices, annual % change)	8.5	8.7	7.0	-1.5e	0.7
GDP per capita (USD)	5,458	6,617	8,214	7,732	7,705
Inflation rate (%)	10.9	8.8	8.6	6.7	7.3e
Unemployment rate (% of the labor force)	10.2	7.5	7.3	-	-
Current Account (billions USD)	4.87	4.29	4.43	3.18e	5.63e
Current Account (in % of GDP)	2.3	1.6	1.4e	1.0e	1.8e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The Argentinian economy is traditionally based on the production agricultural products (the sector accounts for approximately 10% of the GDP) and on livestock farming. Before the Second World War, Argentina was among the leading world producers in these two areas. Today, Argentina remains one of the world's leading cattle and cereals producing regions. Argentina also owns the world's largest tannin and linseed oil reserves.

Having started at the beginning of the twentieth century, the industrialization of Argentina was supported by President Peron from 1946. The industry sector has vastly expanded over these last few years. It contributes to more than one third of the GDP. Food packaging (in particular meat packing, flour grinding, and canning) and flour-milling are the country's main industries.

The services sector followed the same trend as the industry sector. Today, it contributes to more than half of the GDP. Argentina has specialized in areas of high-tech services and offers excellent value for money specifically in software development, call centers and nuclear energy.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	1.1	23.5	75.1
Value added (in % of GDP)	9.4	33.7	56.9
Value added (annual % change)	9.8	7.4	8.8

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Argentine Peso (ARS) - Average annual exchange rate for 1 USD	2.92	2.90	3.05	3.10	3.14

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 52.3/100
Position:: mostly unfree
World Rank:: 138 out of 179
Regional Rank:: 25 out of 29

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Argentina is very open to international exchanges. It exports more than what it imports. Its main commercial partners are the Mercosul countries (Brazil, Paraguay and Uruguay), China and the United States. The devaluation of the peso has boosted Argentina's exports (especially of agricultural products). However, the increased rate of the Argentinian peso compared to the American dollar risks damaging the competitiveness of Argentina's exports which would cause the balance of trade to deteriorate.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	13,134	21,311	27,300	32,588	42,525
Exports of goods (millions USD)	29,939	34,576	40,387	46,546	55,780
Imports of services (millions USD)	5,693	6,619	7,620	8,529	10,828
Exports of services (millions USD)	4,500	5,288	6,635	7,987	10,306
Imports of goods and services (annual % change)	37.6	40.1	20.1	15.2	20.6
Exports of goods and services (annual % change)	6.0	8.1	13.5	7.4	9.0
Imports of goods and services (in % of GDP)	14.2	18.2	19.2	19.2	20.3
Exports of goods and services (in % of GDP)	25.0	25.3	25.1	24.7	24.6
Trade Balance (millions USD)	16,805	13,265	13,087	13,958	13,255
Trade Balance (including service) (millions USD)	15,611	11,934	12,101	13,417	12,732
Foreign trade (in % of GDP)	39.2	43.4	44.3	43.9	45.0

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Brazil	18.9%
China	9.1%
United States	7.9%
Chile	6.7%
Netherlands	4.2%
Spain	3.9%
Uruguay	2.6%
Italy	2.4%
Germany	2.1%
Venezuela	2.0%
Mexico	1.9%
Peru	1.9%
Paraguay	1.6%
Iran	1.5%
Egypt	1.5%
South Africa	1.4%
Russia	1.4%
France	1.3%
Algeria	1.3%
India	1.2%
See more countries	53.1%

Main suppliers (% of imports)	2008
Brazil	31.3%
China	12.4%
United States	12.2%
Germany	4.4%
Paraguay	3.1%
Mexico	2.8%
France	2.5%
Japan	2.4%
Italy	2.1%
Spain	1.8%
Chile	1.7%
Russia	1.3%
South Korea	1.3%
United Kingdom	0.9%
Uruguay	0.9%
India	0.9%
Thailand	0.8%
Malaysia	0.7%
Switzerland	0.6%
Canada	0.6%
See more countries	36.6%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	11.1%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	10.1%
CerealsCereals	9.7%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	9.6%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	9.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	7.0%
Meat and edible meat offalMeat and edible meat offal	2.8%
Articles of iron or steelArticles of iron or steel	2.7%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	2.6%
Miscellaneous chemical productsMiscellaneous chemical products	2.5%
Plastics and articles thereofPlastics and articles thereof	2.1%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	2.0%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	1.8%
Ores, slag and ashOres, slag and ash	1.6%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	1.6%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	1.4%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	1.3%
Aluminium and articles thereofAluminium and articles thereof	1.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.1%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.1%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	1.0%
Pharmaceutical productsPharmaceutical products	0.9%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	0.9%
Iron and steelIron and steel	0.9%
Organic chemicalsOrganic chemicals	0.8%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.7%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.7%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.6%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.6%
Rubber and articles thereofRubber and articles thereof	0.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.5%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.5%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.4%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.4%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.4%
Sugars and sugar confectionerySugars and sugar confectionery	0.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.3%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.3%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.3%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.1%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	0.1%
Ships, boats and floating structuresShips, boats and floating structures	0.1%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.1%
FertilizersFertilizers	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
See more products	50.3%

Main imports (% of imports)	2008
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	16.3%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	16.2%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	11.0%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	7.2%
Organic chemicalsOrganic chemicals	5.4%
Plastics and articles thereofPlastics and articles thereof	3.9%
Iron and steelIron and steel	2.9%
FertilizersFertilizers	2.6%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	2.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	2.1%
Pharmaceutical productsPharmaceutical products	2.0%
Articles of iron or steelArticles of iron or steel	2.0%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.9%
Rubber and articles thereofRubber and articles thereof	1.9%
Miscellaneous chemical productsMiscellaneous chemical products	1.8%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.7%
Ores, slag and ashOres, slag and ash	1.7%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.6%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.7%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.6%
Copper and articles thereofCopper and articles thereof	0.6%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.6%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.6%
Man-made staple fibresMan-made staple fibres	0.5%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Glass and glasswareGlass and glassware	0.5%
CottonCotton	0.5%
Aluminium and articles thereofAluminium and articles thereof	0.5%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.4%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.4%
Man-made filamentsMan-made filaments	0.4%
Ceramic productsCeramic products	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Meat and edible meat offalMeat and edible meat offal	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.1%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.1%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.1%
See more products	43.9%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: State Portal
Ministry of the Economy
Secretariat of Agriculture, breeding, fishing and food (Sagpya)
Ministry of Foreign Relations, International Trade and Religion
Statistical Office: Instituto Nacional de Estadística y Censos (INDEC)
Central Bank: Banco Central de la República Argentina
Stock Exchange: Bolsa de Comercio de Buenos Aires
Search Engines: Grippo
Lycos Argentina
Terra
Yahoo! Argentina
Economic portals: Portal of Argentina, Economic Section

Political outline

Executive Power: Executive power is held by the President of the Argentine nation. It is his/her responsibility to respond to national interests.
The President is the supreme head of the country, head of government, the politician responsible for the general administration of the country and commander-in-chief of the armed forces. The president is elected by universal suffrage for four years and can be re-elected for two consecutive terms of office. The vice-president is elected with him/her. The president appoints the Council of Ministers.
Argentina has 23 provinces and 1 autonomous federal district, which have retained some powers which do not belong to the federal government. They elect their own legislators and provincial governors.
Legislative Power: The legislative power is composed of a two-chamber parliament: a lower chamber, the Chamber of Deputies elected for 4 years by direct universal suffrage, and an upper chamber, the Senate elected for 6 years also by direct universal suffrage.
The parliament is called Congreso Nacional (National Congress).
Main political parties: The country has two large political parties: the PJ (Partido Justicialista, also called the Peronist Party) and the UCR (Civic Radical Union). Traditionally, the UCR has a more middle class, urban electorate, and the PJ an electorate of workers. But today both parties have a wider electoral base. The smaller parties, like the center-right PRO (Republican Initiative for Alliance) and, further left, the ARI (Argentina for an Egalitarian Republic) occupy different positions in the political spectrum, and some are only active in a few provinces.
Current political leaders: President : Cristina FERNANDEZ de KIRCHNER (since 2007)
Vice President : Julio COBOS
Next election dates: Presidential elections:october 2011
Chamber of Deputies and Senate:october 2011

Indicator of freedom of the press

World Rank:: 68/173
Evolution:: 14 places up compared to 2007

Source: Worldwide Press Freedom Index 2008, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 2/7
Civil liberties:: 2/7

Map of freedom 2007
Source: Freedom House

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