With a Gross Domestic Product (GDP) of approximately US$650 billion, Argentina is one of the largest economies in Latin America.
Argentina has vast natural resources in energy and agriculture. Within its 2.8 million square kilometers of territory, Argentina is endowed with extraordinary fertile lands, gas, and lithium reserves, and has great potential for renewable energy. Argentina is a leading food producer with large-scale agricultural and livestock industries. In addition, Argentina has significant opportunities in some manufacturing subsectors, and innovative services in high tech industries.
While Argentina’s economy expanded by 5% in 2022, the impact of a devastating drought is expected to result in a 2.5% negative growth in 2023. Growth is expected to accelerate in 2024, due to improved climatic conditions, continued historically high soybean prices and investments in the energy sector that will allow the country to reduce gas imports and improve external accounts.
The severe drought has deteriorated economic conditions and further amplified preexisting macro imbalances. Annual inflation accelerated in 2023, reaching 124 percent in August, affecting marginalized segments of the population. According to national statistics published in September 2023, poverty stands at 40.1% and extreme poverty stands at 9.1%..
Argentina is currently (since early 2022) under a 30-months Extended Fund Facility (EFF) with the International Monetary Fund (IMF). By end-August 2023 the IMF Executive Board completed the combined fifth and six review of the program, granting Argentina access to about US$7.5bn. Key program targets were missed through end-June 2023 on account of the historic drought. Modifications to the reserve accumulation target, as well as to the (nominal) primary fiscal balance and monetary financing of the deficit targets, were also approved alongside a commitment to implement a new policy package to correct policy setbacks, safeguard stability, and secure program objectives.
Last Updated:Oct 02, 2023
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Argentina, with a Gross Domestic Product (GDP) of approximately US$650 billion, stands as one of the largest economies in Latin America. The nation possesses vast natural resources, particularly in energy and agriculture. With 2.8 million square kilometers of territory, Argentina boasts fertile lands, substantial gas and lithium reserves, and significant potential for renewable energy.
The country is a key player in the food production sector, featuring large-scale agricultural and livestock industries. Additionally, Argentina has opportunities in various manufacturing subsectors and innovative services within high-tech industries.
In terms of economic performance, Argentina experienced a 5% expansion in its economy in 2022. However, the impact of a severe drought is anticipated to lead to a negative growth of 2.5% in 2023. The expectation is that growth will rebound in 2024 due to improved climatic conditions, sustained high soybean prices, and investments in the energy sector, which aims to reduce gas imports and enhance external accounts.
Unfortunately, the devastating drought has exacerbated existing macro imbalances, leading to adverse economic conditions. Inflation soared in 2023, reaching 124% in August, particularly affecting marginalized segments of the population. Disturbingly, national statistics from September 2023 reveal that poverty stands at 40.1%, with extreme poverty at 9.1%.
Notably, Argentina has been under a 30-month Extended Fund Facility (EFF) with the International Monetary Fund (IMF) since early 2022. By the end of August 2023, the IMF Executive Board completed the fifth and sixth review of the program, granting Argentina access to about US$7.5 billion. Key program targets were missed due to the historic drought, leading to modifications in reserve accumulation targets, nominal primary fiscal balance, and monetary financing of deficit targets. These adjustments were made alongside a commitment to implement a new policy package to address setbacks, ensure stability, and achieve program objectives.
This information provides a comprehensive overview of Argentina's economic situation, covering key aspects such as GDP, natural resources, economic performance, inflation, poverty rates, and the country's relationship with the IMF. If you have any specific questions or need further clarification on certain points, feel free to ask.
