Argentina flag Argentina: Economic outline

Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Argentina has a long history of political and economic instability - with significant growth fluctuations every year. In 2021, the country had an estimated growth in GDP of 7.5%, mainly driven by the recovery of investments and private consumption, as well as the vigour shown by exports favoured by the high prices of commodities. South America’s second largest economy is expected to continue to recover in the coming years, albeit at a slower pace, with the IMF predicting a GDP growth of 2.5% for 2022 and 2% for 2023.

Since 1950, Argentina has spent 33% of the time in recession, second in the world behind the Democratic Republic of Congo, according to the World Bank. The country's structurally high inflation increased in 2021 and hit an estimated 52.1%, according to the National Institute of Statistics and Censuses, in part because a large share of the fiscal deficit is monetised. In order to curb inflationary pressures, the Central Bank has kept the pace of currency depreciation below inflation in 2021. According to the IMF, general government balance in Argentina represented an estimated 0.7% of GDP, while public debt reached 104.5% in 2021. Furthermore, the country has been making progress in its US$40-billion debt renegotiation with the IMF, although an agreement is yet to be reached. Although the pandemic has significantly impacted the Argentine economy, the country has begun to recover. In 2021, the government continued implementing measures to counteract the economic crisis resulting from the pandemic, which included increased health spending, financial support for workers and vulnerable groups, price controls for food and medical supplies, and credit guarantees for bank lending to SMEs for the production of foods and basic supplies. Based on the government’s estimates, these measures added up to 2.1% of GDP in 2021 and are expected to total about 0.9% of GDP in 2022.

In 2021, the unemployment rate in Argentina fell to an estimated 10%, consistent with the economic recovery the country experienced. That downward trend is expected to continue in 2022 and 2023, when unemployment rates should reach 9.2%. However, even though formal employment has been rising, high labour informality remains a concern in the country. The Argentine government has faced difficulties in fighting high levels of poverty, which affects more than 40% of the population, and the social situation of the country is characterised by constant underlying tensions between the Government and trade unions over the reforms announced. The country is also split between central and decentralised authorities over the distribution of federal revenues. Infrastructure net works require more investment as access to electricity and water in rural areas is not always ensured.

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 451.82e389.06e455.17483.77476.49
GDP (Constant Prices, Annual % Change) -2.1e-9.9e10.03.02.5
GDP per Capita (USD) 10,054e8,572e9,92910,44810,189
General Government Balance (in % of GDP) -3.0-5.7e0.00.00.0
General Government Gross Debt (in % of GDP) 88.7102.8e0.00.00.0
Inflation Rate (%) 53.542.0e48.451.743.5
Unemployment Rate (% of the Labour Force) 9.811.6e10.09.29.2
Current Account (billions USD) -3.713.31e4.533.733.98
Current Account (in % of GDP) -0.80.9e1.00.80.8

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

 
Monetary Indicators 20162017201820192020
Argentine Peso (ARS) - Average Annual Exchange Rate For 1 GBP 19.9321.3237.4860.1390.43

Source: World Bank, 2015

 

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Latest Update: June 2022

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