Part 45

Flag description: three equal horizontal bands of light blue (top), white, and light blue; centered in the white band is a radiant yellow sun with a human face known as the Sun of May

Economy

Economy - overview: 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 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. Unemployment increased slightly - to over 17% - and Buenos Aires was forced to renegotiate fiscal targets with the IMF. Although the economy is expected to grow by at least 5% in 1997, unemployment and fiscal concerns will continue to challenge the MENEM administration.

GDP: purchasing power parity - $296.9 billion (1996 est.)

GDP - real growth rate: 4.4% (1996)

GDP - per capita: purchasing power parity - $8,600 (1996 est.)

GDP - composition by sector: agriculture: 7% industry: 29% services: 64% (1995 est.)

Inflation rate - consumer price index: 0.1% (yearend 1996)

Labor force: total: 14.5 million (1995 est.) by occupation : agriculture 12%, industry 31%, services 57% (1985 est.)

Unemployment rate: 17.3% (October 1996)

Budget: revenues: $50.3 billion expenditures : $51.7 billion, including capital expenditures of $3.2 billion (1995 est.)

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

Industrial production growth rate: 5% (1996 est.)

Electricity - capacity: 20.207 million kW (1995)

Electricity - production: 67.369 billion kWh (1995)

Electricity - consumption per capita: 1,606 kWh (1995 est.)

Agriculture - products: wheat, corn, sorghum, soybeans, sugar beets; livestock

Exports: total value: $23.8 billion (f.o.b., 1996) commodities : meat, wheat, corn, oilseed, manufactures, fuels partners: Brazil 26.1%, US 8.5%, Chile 7.0%, Netherlands 5.7%, Italy 3.5% (1995)

Imports: total value: $23.7 billion (c.i.f., 1996) commodities: machinery and equipment, chemicals, metals, transport equipment, agricultural products partners: Brazil 20.8%, US 20.7%, Italy 6.3%, Germany 6.2%, France 5.2% (1995)

Debt - external: $95 billion (1996 est.)

Economic aid: $NA

Currency: 1 nuevo peso argentino = 100 centavos

Exchange rates: pesos per US$1 - 0.99950 (January 1997), 0.99966 (1996), 0.99975 (1995), 0.99901 (1994), 0.99895 (1993), 0.99064 (1992)

Fiscal year: calendar year

@Argentina:Communications

Telephones: 4.6 million (1990)

Telephone system: 12,000 public telephones; extensive modern system but many families do not have telephones; despite extensive use of microwave radio relay, the telephone system frequently grounds out during rainstorms, even in Buenos Aires domestic: microwave radio relay and a domestic satellite system with 40 earth stations serve the trunk network international : satellite earth stations - 2 Intelsat (Atlantic Ocean)

Radio broadcast stations: AM 171, FM 0, shortwave 13