Economy - overview:
Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the twentieth century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. Beginning in 1998, with external debt equivalent to more than 400 percent of annual exports, economic growth slowed and ultimately fell into a full-blown depression, as investors' fears grew in the wake of Russia's debt default, political discord caused by then-President Carlos MENEM's unpopular efforts to run for a constitutionally prohibited third term, and Brazil's devaluation. The government of Fernando DE LA RUA, elected President in late 1999, tried several measures to cut the fiscal deficit and instill confidence and received large IMF credit facilities, but nothing worked to revive the economy. Depositors began withdrawing money from the banks in late 2001, and the government responded with strict limits on withdrawals. When street protests turned deadly, DE LA RUA was forced to resign in December 2001. Interim President Adolfo Rodriguez SAA declared a default, the largest in history, on Argentina's foreign debt, but he stepped down only a few days later when he failed to garner political support from the country's governors. Eduardo DUHALDE became President in January 2002 and announced an end to the peso's decade-long 1-to-1 peg to the US dollar. When the peso depreciated and inflation rose, DUHALDE's government froze utility tariffs indefinitely, curtailed creditors' rights, and imposed high taxes on exports. The economy rebounded strongly from the crisis, inflation started falling, and DUHALDE called for special elections. Nestor KIRCHNER was elected President, taking office in May 2003, and continued the restrictions imposed by DUHALDE. With the reemergence of double-digit inflation in 2005, the KIRCHNER administration pressured businesses into a series of agreements to hold down prices. The government also restructured its defaulted debt in 2005, convincing most bondholders to accept a large cut on the value of their holdings, and paid off its IMF obligations from reserves in full in early 2006, both of which have reduced Argentina's external debt burden. Real GDP has continued growing strongly, averaging 9 percent during the period 2003-2006, bolstering government revenues and keeping the fiscal accounts-a key vulnerability in the past-in surplus.

GDP (purchasing power parity):
$599.1 billion (2006 est.)

GDP (official exchange rate):
$210 billion (2006 est.)

GDP - real growth rate:
8.5% (2006 est.)

GDP - per capita (PPP):
$15,000 (2006 est.)

GDP - composition by sector:
agriculture: 9.5%
industry: 35.8%
services: 54.7% (2005 est.)

Labor force:
15.35 million (2006 est.)

Labor force - by occupation:
agriculture: NA%
industry: NA%
services: NA%

Unemployment rate:
10.2% (3rd quarter)

Population below poverty line:
31.4% (June 2006)

Household income or consumption by percentage share:
lowest 10%: 1%
highest 10%: 35%

Distribution of family income - Gini index:
48.3 (June 2006)

Inflation rate (consumer prices):
10% (November 2006 est.)

Investment (gross fixed):
22.6% of GDP (2006 est.)

Budget:
revenues: $52.1 billion
expenditures: $47.6 billion; including capital expenditures of $5.4 billion (2006 est.)

Public debt:
62.2% of GDP (2006 est.)

Agriculture - products:
sunflower seeds, lemons, soybeans, grapes, corn, tobacco, peanuts, tea, wheat; livestock

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

Industrial production growth rate:
8.2% (2006 est.)

Electricity - production:
93.94 billion kWh (2004)

Electricity - consumption:
90.93 billion kWh (2004)

Electricity - exports:
4.143 billion kWh (2004)

Electricity - imports:
7.7 billion kWh (2004)

Oil - production:
745,000 bbl/day (2005 est.)

Oil - consumption:
470,000 bbl/day (2004 est.)

Oil - exports:
470,000 bbl/day (2003)

Oil - imports:
39,000 bbl/day (2003)

Oil - proved reserves:
2.116 billion bbl (2006 est.)

Natural gas - production:
44.88 billion cu m (2004 est.)

Natural gas - consumption:
37.85 billion cu m (2004 est.)

Natural gas - exports:
7.83 billion cu m (2004 est.)

Natural gas - imports:
800 million cu m (2004 est.)

Natural gas - proved reserves:
612.5 billion cu m (1 January 2005 est.)

Current account balance:
$5.81 billion (2006 est.)

Exports:
$46 billion f.o.b. (2006 est.)

Exports - commodities:
edible oils, fuels and energy, cereals, feed, motor vehicles

Exports - partners:
Brazil 15.8%, US 11.4%, Chile 11.2%, China 7.9% (2005)

Imports:
$31.69 billion f.o.b. (2006 est.)

Imports - commodities:
machinery and equipment, motor vehicles, chemicals, metal manufactures, plastics

Imports - partners:
Brazil 35.9%, US 14.1%, China 7.8%, Germany 4.5% (2005)

Reserves of foreign exchange and gold:
$30.24 billion (November 2006 est.)

Debt - external:
$106.8 billion (30 June 2006 est.)

Economic aid - recipient:
$0 (2002)

Currency (code):
Argentine peso (ARS)

Exchange rates:
Argentine pesos per US dollar - 3.05999 (2006), 2.9037 (2005), 2.9233 (2004), 2.9006 (2003), 3.0633 (2002)