ented 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.