Argentina

Article Outline

Introduction; Land and Resources; People; Education and Culture; Economy; Government; History

Economy

Argentina was long one of the most prosperous nations in Latin America. Its prosperity originated with agriculture in the Pampas, the economic heartland of the country. Argentina is one of the world’s leading cattle- and grain-producing nations. Manufacturing grew substantially in the mid-20th century. Argentina’s economy in that period was based on the production and export of agricultural products and livestock, machinery and manufactured goods, fuels and chemicals, and minerals. Since the 1980s, however, nonindustrial activities such as financial services, tourism, commerce, and telecommunications have grown considerably.

At the beginning of the 21st century, Argentina faced considerable economic difficulties. In the 1990s the government changed the primarily state-controlled economy to one that was mostly privately controlled. Successive global and domestic crises battered the Argentine economy and contributed to its instability. In addition, declining domestic tax revenue from a global economic slowdown created a drag on the economy. In 2002 the economy collapsed as Argentina defaulted on its public debt, froze bank accounts, and devalued the peso by 30 percent.

Argentina’s national budget in 2004 had revenues of $27.8 billion and expenditures of $28 billion. Argentina’s gross domestic product (GDP) in 2005 was $183.2 billion.

Labor

In 2005 the total labor force numbered 18.4 million. In 2005 services employed 75 percent of the workforce, while industry employed 24 percent and agriculture, forestry, and fishing employed less than one percent. The movement in the 1990s to privatize many public companies in Argentina changed the structure of Argentina's labor force. In 2000 approximately 1 million people were employed in the public sector (federal, provincial, and municipal levels), compared to 5.1 million in 1991. Employment in the private sector increased from about 8.1 million in 1991 to more than 12 million in 2000.

Agriculture

Argentina’s agricultural output not only fills the nation’s domestic needs but also provides exports for foreign markets. Of Argentina’s land area of about 274 million hectares (about 676 million acres), 10 percent is cultivated, 12 percent forested, and about one-half is used for pasturing cattle and sheep. The most important agricultural zone of the country is the Pampas, where wheat and other cereal grains are grown. Irrigated areas, from the Río Negro north through Mendoza, San Juan, Tucumán, and San Salvador de Jujuy, are rich sources of fruit, vegetables, sugarcane, and wine grapes.

Livestock raising and slaughtering are major enterprises in Argentina, as are the refrigeration and processing of meat and animal products; total annual meat production is about 3 million metric tons, three-quarters of it from cattle. In 2005 there were some 50.8 million head of cattle, 12.4 million sheep, and 1.5 million pigs in Argentina. In addition, there were about 3.7 million horses; Argentine horses have won an international reputation as racehorses and polo ponies.

Livestock exports play an important role in foreign trade. Earnings from meat, hides, and live animal exports in the early 21st century were about $1.9 billion annually, or about 7 percent of total export earnings. Argentina has long ranked as a world leader in the export of raw meat. Cooked and canned meats are also increasingly important exports.

Argentina also produces and exports large quantities of wool; in 2005, 60,000 metric tons of wool were produced. The Patagonia region is home to about 40 percent of all sheep in Argentina.

Wheat is Argentina’s most important crop. The country is among the major producers of wheat in the world. In 2005, the wheat crop totaled 16 million metric tons. Other major cash crops were maize, soybeans, and sorghum. Other major field crops include barley, sunflower seeds, sugarcane, potatoes, rice, and tobacco, as well as grapes, oranges, apples, lemons, and grapefruit.

Forestry and Fishing

Situated mainly in mountain areas distant from centers of population, Argentina’s 33 million hectares (81.6 million acres) of forest are relatively unused. Among the most harvested trees are elm and willow, for cellulose production; white quebracho, for fuel; red quebracho, for tannin (used for tanning leather); and cedar, for the manufacture of furniture. Other economically important trees are oak, araucaria, pine, eucalyptus, and cypress.

Argentina’s fisheries, potentially highly productive, have not been fully exploited, although production has increased steadily since the 1960s. In 2004 the catch was 953,260 metric tons. Argentine hake and squid are an important part of the catch.

Mining

Although Argentina has a variety of mineral deposits, mining has historically been of only modest importance to the nation’s economy. Since the 1990s, however, production of petroleum and natural gas has increased significantly. In 2003 fuel products accounted for 17.3 percent of national exports. In addition to petroleum and natural gas, relatively small quantities of iron ore, gold, silver, lead, zinc, copper, and boron are also mined in Argentina.

In terms of value, the chief mineral product is petroleum. In 2004 production of crude petroleum was 271 million barrels, furnishing the country’s needs and allowing Argentina to become a net energy exporter. Major petroleum reserves are located in Patagonia and offshore near the Falkland Islands (Islas Malvinas). Natural gas production has doubled since the 1980s to about 41 billion cubic meters in 2003, with reserves located mainly in Patagonia and Tierra del Fuego.

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