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Argentina Economy 1996
Argentina, rich in natural resources, benefits also from 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. The
economy registered an impressive 6% advance in 1994, 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. At the start of 1995, the government
had to deal with the spillover from international financial movements
associated with the devaluation of the Mexican peso. In addition,
unemployment had become a serious issue for the government. Despite average
annual 7% growth in 1991-94, unemployment surprisingly has doubled - due
mostly to layoffs in government bureaus and in privatized industrial firms
and utilities and, to a lesser degree, to illegal immigration. Much remains
to be done in the 1990s in dismantling the old statist barriers to growth,
extending the recent economic gains, and bringing down the rate of
unemployment.
GDP - purchasing power parity - $270.8 billion (1994 est.)
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National product real growth rate:
-
National product per capita:
-
Inflation rate (consumer prices):
$46.5 billion, including capital expenditures of $3.5 billion (1994 est.)
$15.7 billion (f.o.b., 1994 est.)
meat, wheat, corn, oilseed, manufactures
US 12%, Brazil, Italy, Japan, Netherlands
$21.4 billion (c.i.f., 1994 est.)
machinery and equipment, chemicals, metals, fuels and lubricants,
agricultural products
US 22%, Brazil, Germany, Bolivia, Japan, Italy, Netherlands
growth rate 12.5% accounts for 31% of GDP (1994 est.)
food processing, motor vehicles, consumer durables, textiles, chemicals and
petrochemicals, printing, metallurgy, steel
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
increasing use as a transshipment country for cocaine headed for the US and
Europe
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
1 nuevo peso argentino = 100 centavos
pesos per US$1 - 0.99870 (December 1994), 0.99901 (1994), 0.99895 (1993),
0.99064 (1992), 0.95355 (1991), 0.48759 (1990)
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