n: Ambassador Lino GUTIERREZ
embassy: Avenida Colombia 4300, C1425GMN Buenos Aires
mailing address: international mail: use street address; APO
address: Unit 4334, APO AA 34034
telephone: [54] (11) 5777-4533
FAX: [54] (11) 5777-4240

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 Argentina

Economy - overview:
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 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 2003 and again in
2004, with unemployment falling and inflation remaining in single
digits.

GDP (purchasing power parity):
$483.5 billion (2004 est.)

GDP - real growth rate:
8.3% (2004 est.)

GDP - per capita:
purchasing power parity - $12,400 (2004 est.)

GDP - composition by sector:
agriculture: 10.6%
industry: 35.9%
services: 53.5% (2004 est.)

Labor force:
15.04 million (2004 est.)

Labor force - by occupation:
agriculture NA%, industry NA%, services NA%

Unemployment rate:
14.8% (2004 est.)

Population below poverty line:
44.3% (June 2004)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
6.1% (2004 est.)

Investment (gross fixed):
18.3% of GDP (2004 est.)

Budget:
revenues: $29.15 billion