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, theeconomy in the late 1980s was plagued with huge external debts and recurringbouts of hyperinflation. Elected in 1989, in the depths of recession, PresidentMENEM has implemented a comprehensive economic restructuring program thatshows 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 50 years. Argentines haveresponded to price stability by repatriating capital and investing in domesticindustry. Growth averaged more than 8% between 1991 and 1994, then fell to4.6% in 1995, largely in reaction to the Mexican peso crisis. The economygrew at 4.4% in 1996, with the strongest growth occurring in the second halfof the year. Unemployment increased slightly - to over 17% - and Buenos Aireswas forced to renegotiate fiscal targets with the IMF. Although the economyis expected to grow by at least 5% in 1997, unemployment and fiscal concernswill continue to challenge the MENEM administration.

GDP purchasing power parity - $296.9 billion (1996 est.)

GDP - real growth rate 4.4% (1996)

GDP - per capita purchasing power parity - $8,600 (1996 est.)

GDP - composition by sector
agriculture: 7%
industry: 29%
services: 64% (1995 est.)

Inflation rate - consumer price index 0.1% (yearend 1996)

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

Unemployment rate 17.3% (October 1996)

Budget
revenues: $50.3 billion
expenditures : $51.7 billion, including capital expenditures of $3.2 billion (1995est.)

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

Industrial production growth rate 5% (1996 est.)

Electricity - capacity 20.207 million kW (1995)

Electricity - production 67.369 billion kWh (1995)

Electricity - consumption per capita 1,606 kWh (1995 est.)

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

Exports
total value: $23.8 billion (f.o.b., 1996)
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: $23.7 billion (c.i.f., 1996)
commodities: machinery and equipment, chemicals, metals, transport equipment, agriculturalproducts
partners: Brazil 20.8%, US 20.7%, Italy 6.3%, Germany 6.2%, France 5.2% (1995)

Debt - external $95 billion (1996 est.)

Economic aid $NA

Currency 1 nuevo peso argentino = 100 centavos

Exchange rates pesos per US$1 - 0.99950 (January 1997), 0.99966 (1996), 0.99975 (1995),0.99901 (1994), 0.99895 (1993), 0.99064 (1992)

Fiscal year calendar year

NOTE: The information regarding Argentina on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Argentina Economy 1997 information contained here. All suggestions for corrections of any errors about Argentina Economy 1997 should be addressed to the CIA.