Argentina economic overview
Important regional player:
Argentina is Latin America's third-largest economy, with a GDP of slightly over USD 600 billion. It is a member of the Mercosur trade pact, which also includes Brazil, Paraguay and Uruguay.
Agricultural heavyweight:Argentina's economy is significantly bolstered by its strong agricultural sector. It is one of the world's largest producers of soybeans, corn, and wheat, with agriculture constituting a major part of its exports. The fertile Pampas region is particularly crucial for crop production and cattle ranching, though in recent years it has suffered from drought.
Runaway inflation:Inflation has surged in recent years, moving well into triple-digit territory recently to among the highest rates in the world, sustained currency depreciation. This has harmed purchasing power, caused emigration—particularly of young professionals—spawned a rush to obtain U.S. dollars and forced the central bank to keep interest rates high.
History of economic instability:Argentina is no stranger to extreme economic conditions; it has suffered multiple debt defaults and bouts of hyperinflation in its relatively short history as an independent country and has often required IMF bailouts. The most recent default came in 2020—the third so far this century. In 2022, GDP per capita was still notably below its decade-ago level.
Heavy economic distortions:Argentina's economy is characterized by multiple exchange rates, restrictions on trade and currency transactions, and a large government footprint, all of which weigh on activity.
Argentina's economic outlook:GDP is seen beating the Latin American average in the long term, following an expected contraction in 2024 brought on by triple-digit inflation and government spending cuts. President Milei's liberalizing reforms should boost economic activity, though taming inflation and fixing the dysfunctional exchange rate system will be key challenges.
Argentina's economy in numbers:
Nominal GDP of USD 630 billion in 2022.
GDP per capita of USD 13,606 compared to the global average of USD 10,589.
Average real GDP growth of 0.3% over the last decade.
Economic structure:
In 2021, services accounted for 68% of overall GDP, manufacturing 17%, other industrial activity 8%, and agriculture 7%. Looking at GDP by expenditure, private consumption accounted for 62% of GDP in 2021, government consumption 15%, fixed investment 17%, and net exports 6%.International trade:
In 2021, manufactured products made up 14% of total merchandise exports, mineral fuels 3%, food 54%, ores and metals 0% and agricultural raw materials 1%, with other categories accounting for 28% of the total. In the same period, manufactured products made up 77% of total merchandise imports, mineral fuels 9%, food 8%, ores and metals 4% and agricultural raw materials 1%, with other goods accounting for 1% of the total. Total exports were worth USD 88 billion in 2022, while total imports were USD 82 billion.Economic growth:
The economy recorded average annual growth of 0.3% in the decade to 2022. To read more about GDP growth in Argentina, go to our dedicated page.
Fiscal policy:
Argentina's fiscal deficit averaged 4.3% of GDP in the decade to 2022. Find out more on our dedicated page.
Unemployment:
The unemployment rate averaged 8.3% in the decade to 2022. For more information on Argentina's unemployment click here.
Inflation:
Inflation averaged 36.2% in the decade to 2022. Go to our Argentina inflation page for extra insight.
Monetary Policy:
Argentina's monetary policy rate ended 2022 at 75.00%, up from 12.44% a decade earlier. See our Argentina monetary policy page for additional details.
Exchange Rate:
From end-2012 to end-2022 the peso weakened by 97.2% vs the U.S. dollar. For more info on the peso, click here.
63 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 56 expert analysts.
Want to get insight on the economic outlook for Argentina in the coming years? FocusEconomics collects projections out to 2033 on 63 economic indicators for Argentina from a panel of 56 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Argentina economy. To download a sample report on the Argentina's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.
Argentina Economic Data
Q&A:
Is Argentina doing well economically?
Why is Argentina's economy so unstable?
What is Argentina's main source of income?
What is the future of Argentina's economy?
Why is inflation in Argentina so high?
Argentina's economy has faced significant challenges in recent years, including high inflation, fiscal deficits, and debt restructuring. The economy has also been in recession for much of the past decade. Economic stability has been elusive, with large fluctuations in the value of the Argentine peso.
Argentina's economy has been historically unstable due to factors like chronic high inflation, fiscal deficits and debt burdens. Frequent changes in economic policies, political instability, and currency devaluations have further contributed to this instability.
Argentina's main source of income is from its service sector, which accounts for more than half of its GDP. This includes activities such as retail, tourism, and financial services. However, agriculture and manufacturing also play important roles in the economy. Argentina is a major exporter of agricultural products, such as soybeans, corn, and beef.
The future of Argentina's economy remains uncertain, with challenges like inflation, fiscal deficits, and debt. The outcome will depend on the effectiveness of economic policies, debt restructuring efforts, and the global economic environment. Deficit reduction and economic liberalization will be crucial for a more prosperous economic future.
Argentina has struggled with high inflation due to a combination of factors, including fiscal deficits, sustained monetary financing of the fiscal deficit and currency devaluations. Frequent changes in economic policies and uncertainty have eroded confidence in the currency, leading to rising prices and a cycle of inflationary pressures.