Overview: Argentina is rich in natural resources and has 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 shows signs of putting 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 20 years. Argentines have responded to the relative price stability by repatriating flight capital and investing in domestic industry. Growth slowed somewhat in 1993 but Argentina still registered an impressive 6% advance, fueled largely by inflows of foreign capital and strong domestic consumption spending. The government's major short term objective is encouraging exports, e.g., by reducing domestic costs of production. Much remains to be done in the 1990s in dismantling the old statist barriers to growth and in solidifying the recent economic gains.

National product: GDP - purchasing power equivalent - $185 billion (1993 est.)

National product real growth rate: 6% (1993 est.)

National product per capita: $5,500 (1993 est.)

Inflation rate (consumer prices): 7.4% (1993 est.)

Unemployment rate: 10% (1993)

Budget:
revenues: $33.1 billion
expenditures: $35.8 billion, including capital expenditures of $3.5 billion (1992)

Exports: $12.7 billion (f.o.b., 1993 est.)
commodities: meat, wheat, corn, oilseed, hides, wool
partners: US 12%, Brazil, Italy, Japan, Netherlands

Imports: $16 billion (c.i.f., 1993 est.)
commodities: machinery and equipment, chemicals, metals, fuels and lubricants, agricultural products
partners: US 22%, Brazil, Germany, Bolivia, Japan, Italy, Netherlands

External debt: $73 billion (April 1994)

Industrial production: growth rate 10% (1992 est.); accounts for 31% of GDP

Electricity:
capacity: 17,911,000 kW
production: 51.305 billion kWh
consumption per capita: 1,559 kWh (1992)

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

Agriculture: accounts for 8% of GDP (including fishing); produces abundant food for both domestic consumption and exports; among world's top five exporters of grain and beef; principal crops - wheat, corn, sorghum, soybeans, sugar beets

Illicit drugs: increasing use as a transshipment country for cocaine headed for the US and Europe

Economic aid:
recipient: US commitments, including Ex-Im (FY70-89), $1 billion; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $4.4 billion; Communist countries (1970-89), $718 million

Currency: 1 nuevo peso argentino = 100 centavos
Exchange rates: pesos per US$1 - 0.99850 (January 1994), 0.99895 (1993), 0.99064 (1992), 0.95355 (1991), 0.48759 (1990), 0.04233 (1989)

Fiscal year: calendar year

NOTE: The information regarding Argentina on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Argentina Economy 1995 information contained here. All suggestions for corrections of any errors about Argentina Economy 1995 should be addressed to the CIA.