Argentina

Capital: Buenos Aires

Local time:
It is %T:%M %A in Buenos Aires

Exchange rate on :

GDP growth rate: 3.0% in 2012

FDI stock: 66 015 million USD in 2007

Country risk: See the country risk analysis from Argentina provided by Ducroire.

Economic trends

Sunk in recession from 1998, Argentina found itself bankrupt in 2001. The Argentinian economy started recovering from 2003. Between 2004 and 2007, GDP growth rate was high, however, the country was affected by the financial crisis of 2008. Growth prospects for the future appear to be lower. Household consumptions, which dynamized economic growth are expected to decline. Cristina Kirchner's government will continue to distance itself from the market liberalization policies carried out during the 1990s and prefers to have the state to play a more interventionist role in the economy. As for inflation, it should stay under control despite an upward trend.

The social consequences of the 2001 economic crisis are still ever present and the Argentinian economy is structurally fragile; the financial system is weak, the social situation is sensitive (unemployment and malnutrition persist, 25% of the population lives under the poverty threshold), and the country is facing an energy crisis. Nevertheless, Argentina has all the necessary assets to weather the difficulties. Its flourishing agriculture which is directed towards export attracts foreign investmets, its natural resources are significant (copper, gas and oil) and its work force is qualified and competitive.

Main branches of industry

The Argentinian economy is traditionally based on the production agricultural products (the sector accounts for approximately 10% of the GDP) and on livestock farming. Before the Second World War, Argentina was among the leading world producers in these two areas.  Today, Argentina remains one of the world's leading cattle and cereals producing regions. Argentina also owns the world's largest tannin and linseed oil reserves.

Having started at the beginning of the twentieth century, the industrialization of Argentina was supported by President Peron from 1946. The industry sector has vastly expanded over these last few years. It contributes to more than one third of the GDP. Food packaging (in particular meat packing, flour grinding, and canning) and flour-milling are the country's main industries.

The services sector followed the same trend as the industry sector. Today, it contributes to more than half of the GDP. Argentina has specialized in areas of high-tech services and offers excellent value for money specifically in software development, call centers and nuclear energy.

International trade

Argentina is very open to international exchanges. It exports more than what it imports. Its main commercial partners are the Mercosul countries (Brazil, Paraguay and Uruguay), China and the United States. The devaluation of the peso has boosted Argentina's exports (especially of agricultural products). However, the increased rate of the Argentinian peso compared to the American dollar risks damaging the competitiveness of Argentina's exports which would cause the balance of trade to deteriorate.

Learn more

For more information on Argentina

The Country Profiles of the Foreign and Commonwealth Office

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Business News of the British Chamber

For more advices

The business advices of the Foreign and Commonwealth Office

Are You Ready to Export? - The online test of the UK Trade and Investment Website