| Economy - overview: | Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Over the past decade, however, the country has suffered problems of inflation, external debt, capital flight, and budget deficits. Growth in 2000 was a negative 0.8%, as both domestic and foreign investors remained skeptical of the government's ability to pay debts and maintain the peso's fixed exchange rate with the US dollar. The economic situation worsened in 2001 with the widening of spreads on Argentine bonds, massive withdrawals from the banks, and a further decline in consumer and investor confidence. Government efforts to achieve a "zero deficit," to stabilize the banking system, and to restore economic growth proved inadequate in the face of the mounting economic problems. The peso's peg to the dollar was abandoned in January 2002, and the peso was floated in February; the exchange rate plunged and real GDP fell by 10.9% in 2002, but by mid-year the economy had stabilized, albeit at a lower level. GDP expanded by about 8% per year from 2003 to 2005. Growth is being led by a revival in domestic demand, solid exports, and favorable external conditions. The government boosted spending ahead of the October 2005 midterm congressional elections, but strong revenue performance will allow Argentina to exceed its primary budget surplus target for this year of 3.2 percent of GDP. Inflation has been rising steadily and is expected to reach 11.8 percent this year. |
| GDP - per capita | $13,600 (2005 est.) |
| GDP - real growth rate (%) | 8.2% (2005 est.) |
| Agriculture - products | sunflower seeds, lemons, soybeans, grapes, corn, tobacco, peanuts, tea, wheat; livestock |
| GDP - composition by sector (%) | agriculture: 10.5%, industry: 35.8%, services: 53.7% (2004 est.) |
| Industries | food processing, motor vehicles, consumer durables, textiles, chemicals and petrochemicals, printing, metallurgy, steel |
| Economic aid - recipient | $10 billion (2001 est.) |
| Debt - external | $119 billion (June 2005 est.) |
| Population below poverty line (%) | 38.5% (June 2005) |
| Labor force - by occupation (%) | agriculture NA%, industry NA%, services NA% |
Environment, Land use / Resources, Economy, Population / Demographics, Infrastructure, Health -- CIA World Factbook, 2005
