Economic overview Argentina, in 36 editions.

Argentina is rich in natural resources, resources and has a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Nevertheless, following decades of mismanagement and statist policies, the economy has encountered major problems in recent years, leading to escalating inflation and a recession in 1988-89. Economic growth slowed to 2.0% in 1987 and to - 1.8% in 1988; a sharp decline of - 5.5% has been estimated for 1989. 1988-90. A widening public-sector deficit and a multidigit inflation rate has have dominated the economy over the past three years, reaching about years; retail prices rose nearly 5,000% in 1989. 1989 and another 1,345% in 1990. Since 1978, Argentina's external debt has nearly doubled to $60 billion, creating severe debt-servicing difficulties and hurting the country's creditworthiness with international lenders.

Argentina is rich in natural resources and has a highly literate population,
an export-oriented agricultural sector, and a diversified industrial base.
Nevertheless, following decades of mismanagement and statist policies, the
economy has encountered major problems in recent years, leading to
escalating inflation and a recession in during 1988-90. A widening public-sector deficit and a multidigit inflation rate have dominated the economy over the past three years; retail prices rose nearly 5,000% in 1989 and another 1,345% in 1990. Since 1978, Argentina's
external debt has nearly doubled to $60 $58 billion, creating severe debt-servicing debt
servicing difficulties and hurting the country's creditworthiness with
international lenders. Elected in 1989, President Menem has implemented a
comprehensive economic restructuring program that shows signs of reversing
Argentina's economic decline and putting it on a path of stable, sustainable
growth.

Argentina is rich in natural resources and has a highly literate population,
an export-oriented agricultural sector, and a diversified industrial base.
Nevertheless, following decades of mismanagement and statist policies, the
economy has encountered major problems in recent years, leading to
escalating inflation and a recession during 1988-90. Since 1978, Argentina's
external debt has nearly doubled to $58 billion, creating severe debt
servicing difficulties and hurting the country's creditworthiness late 1980s was plagued with huge external debts and recurring
international lenders. bouts of hyperinflation. Elected in 1989, in the depths of recession,
President Menem MENEM has implemented a
comprehensive economic restructuring
program that shows signs of reversing
Argentina's economic decline and putting it Argentina on a path of stable, sustainable
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. Much remains
to be done in the 1990s in dismantling the old statist barriers to growth
and in solidifying the recent economic gains.

Argentina is rich in natural resources and has a highly literate population,
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. Growth slowed somewhat in
1993 but Argentina still registered an impressive 6% advance, 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. Much remains
to be done in the 1990s in dismantling the old statist barriers to growth
growth and in solidifying the recent economic gains.

Argentina is Argentina, rich in natural resources and has 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. Growth slowed somewhat in The
1993 but Argentina still economy registered an impressive 6% advance, 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 and in solidifying growth, extending the
recent economic gains. gains, and bringing down the rate of unemployment.

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 After registering impressive 6% advance 7.4% growth in 1994, fueled based largely by on
inflows of foreign capital and strong domestic consumption spending.
The government's major short term objective is encouraging exports, consumption, the
e.g., Argentine economy stumbled in 1995 as financial pressures fueled by reducing domestic costs of production. At the start of 1995,
the government had to deal with Mexican peso crisis and political squabbling within the spillover from international MENEM
financial movements associated with the devaluation of the Mexican administration undermined investor confidence and triggered capital
peso. In addition, unemployment outflows. By yearend, GDP had become a serious issue for the
government. Despite average annual 7% growth in 1991-94, contracted 4.4%, unemployment reached
surprisingly has doubled - due mostly 16%, and Buenos Aires struggled to layoffs in government bureaus meet fiscal targets. On the trade
and front, exports soared during the first half of 1995 - largely
because of strong demand in privatized industrial firms Brazil and utilities and, to a lesser high commodity prices - while
degree, anemic domestic consumption lowered imports; the resulting yearend
trade surplus was about $1.2 billion. However, because exports
contribute only 7.5% to illegal immigration. Much remains GDP, increased foreign sales had little
impact on aggregate growth. High unemployment will continue to be done in the 1990s
in dismantling plague the old statist barriers to growth, extending MENEM administration for the next several years as
recent economic gains, provincial entities are readied for privatization and bringing down the rate of unemployment. more public
sector employees are laid off.

Argentina, Argentina benefits from 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.
growth. Argentina's currency has traded at par with the US dollar since
since April 1991, and inflation has fallen to its lowest level in 20 50
years. Argentines have responded to the relative price stability by
repatriating flight
capital and investing in domestic industry. Growth averaged more than
After registering impressive 7.4% growth in 8% between 1991 and 1994, based then fell to 4.6% in 1995, largely on in
inflows of foreign capital and strong domestic consumption, reaction to the
Argentine Mexican peso crisis. The economy stumbled grew at 4.4% in 1995 as financial pressures fueled by 1996,
with the Mexican peso crisis and political squabbling within strongest growth occurring in the MENEM
administration undermined investor confidence and triggered capital
outflows. By yearend, GDP had contracted 4.4%, unemployment reached second half of the year.
16%, Unemployment increased slightly - to over 17% - and Buenos Aires struggled was
forced to meet renegotiate fiscal targets. On targets with the trade
front, exports soared during IMF. Although the first half of 1995 - largely
because of strong demand economy is expected to grow by at least 5% in Brazil 1997, unemployment and high commodity prices - while
anemic domestic consumption lowered imports; the resulting yearend
trade surplus was about $1.2 billion. However, because exports
contribute only 7.5% to GDP, increased foreign sales had little
impact on aggregate growth. High unemployment fiscal concerns will continue to
plague challenge the MENEM administration for the next several years as
provincial entities are readied for privatization and more public
sector employees are laid off. administration.

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, 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 has put 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 have responded to price stability by repatriating
capital
and investing in domestic industry. Growth averaged more than
8%
between 1991 and 1994, then fell to 4.6% in 1995, largely in
reaction to
the Mexican peso crisis. The economy grew at 4.4% in 1996,
with the strongest growth occurring in the second half of the year. has since recovered strongly.
Unemployment increased slightly - to over 17% - However, unemployment remains nearly 14%, and Buenos Aires was still
forced depends on foreign capital to renegotiate fiscal targets with the IMF. Although meet the bulk of its financing needs.
economy is expected The IMF has urged additional economic reforms to grow by at least 5% in 1997, unemployment and ensure equitable
fiscal concerns will continue to challenge the MENEM administration. long-term growth.

Argentina benefits from rich natural resources,
a highly literate population, an export-oriented agricultural
sector, and a diversified industrial base. However, when President
Carlos MENEM took office in 1989, the country had piled up huge
external debts, inflation had reached 200% per month, and output was
plummeting. To combat the economic crisis, the government embarked
on a path of trade liberalization, deregulation, and privatization.
In 1991, it implemented radical monetary reforms which pegged the
peso to the US dollar and limited the growth in the monetary base by
law to the growth in reserves. Inflation fell sharply in subsequent
years. The In 1995, the Mexican peso crisis produced capital flight, the loss of
banking system deposits, and a severe, but short-lived, recession in
1995; recession; a series of reforms to bolster the domestic banking system
followed. Real GDP growth recovered strongly, reaching almost 9% 8% in
1997. In 1998, international financial turmoil caused by Russia's problems and increasing investor anxiety over Brazil, its largest
trading partner, Brazil produced the highest domestic interest rates in
more than three years and slowed years, halving the growth rate of the economy. Conditions worsened in 1999 with GDP falling by 3%. President Fernando DE LA RUA, who took office in December 1999, sponsored tax increases and spending cuts to 4.3%. Despite reduce the
relatively high level deficit, which had ballooned to 2.5% of growth GDP in recent years, double-digit
unemployment rates have persisted, largely because 1999. The new government also arranged a new $7.4 billion stand-by facility with the IMF for contingency purposes - almost three times the size of rigidities in
Argentina's the previous arrangement. Key challenges facing the new government include reforming the country's rigid labor laws. code and addressing the precarious financial situation of several highly indebted provinces.

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. However, when President Carlos MENEM took office in 1989, the country had piled up huge external debts, inflation had reached 200% per month, and output was plummeting. To combat the economic crisis, the government embarked on a path of trade liberalization, deregulation, and privatization. In 1991, it implemented radical monetary reforms which pegged the peso to the US dollar and limited the growth in the monetary base by law to the growth in reserves. Inflation fell sharply in subsequent years. In 1995, the Mexican peso crisis produced capital flight, the loss of banking system deposits, and a severe, but short-lived, recession; a series of reforms to bolster the domestic banking system followed. Real GDP growth recovered strongly, reaching 8% in 1997. In 1998, international financial turmoil caused by Russia's problems and increasing investor anxiety over Brazil produced the highest domestic interest rates in more than three years, halving the growth rate of the economy. Conditions worsened in 1999 with GDP falling by 3%. President Fernando DE LA RUA, who took office in December 1999, sponsored tax increases and spending cuts to reduce the deficit, which had ballooned to 2.5% of GDP in 1999. The new government also arranged Growth in 2000 was a new $7.4 billion stand-by facility with the IMF for contingency purposes - almost three times the size disappointing 0.8%, as both domestic and foreign investors remained skeptical of the previous arrangement. Key challenges facing government's ability to pay debts and maintain its fixed exchange rate with the new government include reforming US dollar. One bright spot at the country's rigid labor code and addressing start of 2001 was the precarious financial situation IMF's offer of several highly indebted provinces. $13.7 billion in support.

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 recurring economic problems of inflation, hugh external debt, capital flight, and budget deficits. Growth in 2000 was a negative 0.5%, 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", 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 inflation picked up rapidly, but by mid-2002 the economy had stabilized, albeit at a lower level. Output was 14.7% below the previous year's figure, and unemployment remained high, at 21.5%. In order to reverse the crisis some economists recently have advocated that Argentina adopt Strong demand for the US dollar as peso compelled the national currency, however, others argue tieing Central Bank to intervene in foreign exchange markets to curb its appreciation in early 2003. Led by record exports, the economy closely began to the dollar was precisely what led recover with output up 5.5% in 2003, unemployment falling, and inflation sliced to Argentina's current problems. 4.2% at year-end.

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 recurring economic 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 inflation picked up rapidly, but by mid-2002 the economy had stabilized, albeit at a lower level. Strong demand for the peso compelled the Central Bank to intervene in foreign exchange markets to curb its appreciation in early 2003. Led by record exports, the economy began to recover with output up 5.5% 8% in 2003, unemployment falling, and inflation sliced reduced to 4.2% under 4% at year-end.

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 recurring economic 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 inflation picked up rapidly, real GDP fell by 10.9% in 2002, but by mid-2002 mid-year the economy had stabilized, albeit at a lower level. Strong demand for the peso compelled the Central Bank to intervene in foreign exchange markets to curb its appreciation in 2003. Led GDP expanded by record exports, the economy began to recover with output up more than 8% in 2003, 2003 and again in 2004, with unemployment falling, falling and inflation reduced to under 4% at year-end. remaining in single digits.

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 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 more than 8% in about 9% per year from 2003 and again to 2005. Growth is being led by a revival in 2004, with unemployment falling domestic demand, solid exports, and inflation remaining favorable external conditions. The government boosted spending ahead of the October 2005 midterm congressional elections, but strong revenue performance allowed Argentina to maintain a budget surplus. Inflation has been rising steadily and reached 12.3 percent in single digits. 2005.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and a bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - the largest in history - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 9% annually over the subsequent five years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation, Inflation also increased, however, reached double-digit levels in 2006 and during the government administration of President Nestor KIRCHNER KIRCHNER, which responded with "voluntary" price agreements with restraints on businesses, as well as export taxes and restraints. Multi-year price freezes on electricity and natural gas rates for residential users stoked consumption restraints, and kept private investment away, leading beginning in early 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, but was stymied in her efforts to restrictions on industrial use and blackouts hike export taxes still further by protesting farmers. Her government nationalized private pension funds in 2007. late 2008, which bolstered government coffers, but failed to assuage investors' concerns about the direction of economic policy.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and a bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - the largest in history - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 9% 8.5% annually over the subsequent five six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in early 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, but was stymied in her efforts and the rapid economic growth of previous years began to hike export taxes still further by protesting farmers. Her government nationalized private pension funds in late 2008, which bolstered slow sharply the following year as government coffers, policies held back exports and the world economy fell into recession. The economy has rebounded from the 2009 recession, but failed to assuage investors' concerns about the direction of economic policy. government's continued reliance on expansionary fiscal and monetary policies risks exacerbating already high inflation, which remains under-reported by official statistics.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and a bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - the largest in history - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in early 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy has rebounded strongly from the 2009 recession, but the government's continued reliance on expansionary fiscal and monetary policies risks exacerbating already high inflation, which remains under-reported by official statistics. inflation.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and a an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - the largest in history - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in early 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy has in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government's government continued reliance to rely on expansionary fiscal and monetary policies risks exacerbating already high inflation. policies, which have kept inflation in the double digits.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest in history ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped US $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before and following the 2002 Argentine financial crisis. In early 2014, the government embraced a series of more orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took measures to mend ties with the international financial community, including: engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal to pay its arrears to the Paris Club.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight.
A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data.
Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits.
The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During In October 2013, the government settled long-standing international arbitral disputes dating back to before and following the 2001 Argentine financial crisis. During 2014, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in controls. Between 2011 and 2013, Central Bank foreign reserves, which nevertheless reserves had dropped US $12 $21.3 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. from a high of $52.7 billion. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before July 2014, Argentina and following China agreed on an $11 billion currency swap; the 2002 Argentine financial crisis. Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.
In early 2014, the government embraced a series of more orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and also took some measures to mend ties with the international financial community, including: including engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal agreeing to pay its $9.7 billion in arrears to the Paris Club. Club over five years, including $606 million owed to the United States. In July 2014, Argentina made its first payment to Paris Club creditors since the country’s 2001 financial crisis. At the same time, the Argentine government in July 2014 entered a technical default on its external debt after it failed to reach an agreement with holdout creditors in the US. The government’s delay in reaching a settlement and the continuation of interventionist and populist policies are contributing to high inflation and a prolonged recession, according to private analysts.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight.
A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under below the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data.
Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President president in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits.
The government has taken multiple steps in recent years to deal with these problems. It expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 2012, the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. In October 2013, the government settled long-standing long standing international arbitral disputes dating back to before and following the 2001 Argentine financial crisis. During 2014, the government continued with its expansionary fiscal and monetary policies and foreign exchange and imports controls. Between 2011 and 2013, Central Bank foreign reserves had dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.
In 2014, the government also took some measures to mend ties with the international financial community, including engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and agreeing to pay $9.7 billion in arrears to the Paris Club over five years, including $606 million owed to the United States. US. In July 2014, Argentina made its first payment to Paris Club creditors since the country’s 2001 financial crisis. creditors. At the same time, the Argentine government Government in July 2014 entered a technical default on its external debt after it failed to reach an agreement with holdout creditors in the US. The FERNANDEZ DE KIRCHNER government rejected repeated attempts by the court to encourage a negotiated solution with holdouts. Throughout much of 2015, negotiations to repay holdout creditors stalled. The government’s delay in reaching a settlement and the continuation of interventionist and populist policies are contributing contributed to high inflation and a prolonged recession, according recession.
After being elected into office on December 10, President MACRI has taken significant steps to private analysts. liberalize the Argentine economy. His administration lifted capital controls; floated the peso, negotiated debt payments with holdout bond creditors, and removed export controls on some commodities.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. In 2016, the World Bank downgraded Argentina from a high-income to upper-middle-income economy, on par with Columbia.
A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines below the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data.
Cristina FERNANDEZ DE KIRCHNER succeeded her husband as president in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since in late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits.
The government has taken multiple steps in recent years In order to deal with these problems. It problems, the government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of economy: it nationalized the oil company YPF from Spain's Repsol. The government Repsol, expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration imports, and pre-approval of all imports. In July 2012, the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. In October 2013, the government settled long standing international arbitral disputes dating to before and following the 2001 Argentine financial crisis. During 2014, the government continued its expansionary fiscal and monetary policies and foreign exchange and imports controls. Between 2011 and 2013, Central Bank foreign reserves had dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.
In 2014, the government also took some measures to mend ties with the international financial community, including engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for With the expropriation election of YPF, and agreeing to pay $9.7 billion in arrears to the Paris Club over five years, including $606 million owed to the US. In July 2014, Argentina made its first payment to Paris Club creditors. At the same time, the Argentine Government in July 2014 entered a technical default on its external debt after it failed to reach an agreement with holdout creditors President Mauricio MACRI in the US. The FERNANDEZ DE KIRCHNER government rejected repeated attempts by the court to encourage a negotiated solution with holdouts. Throughout much of November 2015, negotiations to repay holdout creditors stalled. The government’s delay in reaching Argentina began a settlement and the continuation of interventionist policies contributed to high inflation historic political and a prolonged recession.
After being elected into office on December 10, President MACRI has taken significant economic transformation, as his administration took steps to liberalize the Argentine economy. His administration lifted economy, lifting capital controls; floated controls, floating the peso, removing export controls on some commodities, cutting some energy subsidies, and reforming the country’s official statistics. Argentina negotiated debt payments with holdout bond creditors, creditors and removed export controls returned to international capital markets in April 2016. In September 2016, Argentina completed its first IMF Article IV Consultation since 2006.
After years of international isolation, Argentina took on some commodities. several international leadership roles in 2017, including hosting the World Economic Forum on Latin America and the World Trade Organization Ministerial Conference, and is set to assume the presidency of the G-20 in 2018.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. In 2016, the World Bank downgraded Argentina from a high-income to upper-middle-income economy, on par with Columbia.
A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines below the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data.
Cristina FERNANDEZ DE KIRCHNER succeeded her husband as president in late 2007, and in 2008 the rapid economic growth of previous years began to slow slowed sharply the following year as government policies held back exports and the world economy fell into recession. The economy in In 2010 rebounded strongly from the 2009 recession, economy rebounded strongly, but slowed in late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which kept inflation in the double digits.
In order to deal with these problems, the government expanded state intervention in the economy: it nationalized the oil company YPF from Spain's Repsol, expanded measures to restrict imports, and further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. Between 2011 and 2013, Central Bank foreign reserves dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.
With the election of President Mauricio MACRI in November 2015, Argentina began a historic political and economic transformation, as his administration took steps to liberalize the Argentine economy, lifting capital controls, floating the peso, removing export controls on some commodities, cutting some energy subsidies, and reforming the country’s official statistics. Argentina negotiated debt payments with holdout bond creditors creditors, continued working with the IMF to shore up its finances, and returned to international capital markets in April 2016. In September 2016, Argentina completed its first IMF Article IV Consultation since 2006.
After 2017, Argentina’s economy emerged from recession with GDP growth of nearly 3.0%. The government passed important pension, tax, and fiscal reforms. And after years of international isolation, Argentina took on several international leadership roles in 2017, roles, including hosting the World Economic Forum on Latin America and the World Trade Organization Ministerial Conference, and is set to assume the presidency of the G-20 in 2018.

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 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight.
Cristina FERNANDEZ DE KIRCHNER succeeded her husband as president in late 2007, and in 2008 the rapid economic growth of previous years slowed sharply as government policies held back exports and the world economy fell into recession. In 2010 the economy rebounded strongly, but slowed in late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which kept inflation in the double digits.
In order to deal with these problems, the government expanded state intervention in the economy: it nationalized the oil company YPF from Spain's Repsol, expanded measures to restrict imports, and further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. Between 2011 and 2013, Central Bank foreign reserves dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.
With the election of President Mauricio MACRI in November 2015, Argentina began a historic political and economic transformation, as his administration took steps to liberalize the Argentine economy, lifting capital controls, floating the peso, removing export controls on some commodities, cutting some energy subsidies, and reforming the country’s official statistics. Argentina negotiated debt payments with holdout bond creditors, continued working with the IMF to shore up its finances, and returned to international capital markets in April 2016.
In 2017, Argentina’s economy emerged from recession with GDP growth of nearly 3.0%. The government passed important pension, tax, and fiscal reforms. And after years of international isolation, Argentina took on several international leadership roles, including hosting the World Economic Forum on Latin America and the World Trade Organization Ministerial Conference, and is set to assume the presidency of the G-20 in 2018.