mbassy: 4300 Colombia, 1425 Buenos Aires
mailing address: Unit 4334, APO AA 34034
telephone: [54] (1) 777-4533, 4534
FAX: [54] (1) 777-0197

Flag: 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
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Economic overview: Argentina, rich in natural resources, benefits
also from 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 20
years. Argentines have responded to the relative price stability by
repatriating flight capital and investing in domestic industry.
After registering impressive 7.4% growth in 1994, based largely on
inflows of foreign capital and strong domestic consumption, the
Argentine economy stumbled in 1995 as financial pressures fueled by
the Mexican peso crisis and political squabbling within the MENEM
administration undermined investor confidence and triggered capital
outflows. By yearend, GDP had contracted 4.4%, unemployment reached
16%, and Buenos Aires struggled to meet fiscal targets. On the trade
front, exports soared during the first half of 1995 - largely
because of strong demand in Brazil and high commodity prices - while
anemic domestic consumption lowered imports; the resulting yearend
trade surplus was about $1.2 billion. However, because exports
contribute only 7.5% to GDP, increased foreign sales had little
impact on aggregate growth. High unemployment will continue to
plague the MENEM administration for the next several years as
provincial entities are readied for privatization and more public
sector employees are laid off.

GDP: purchasing power parity - $278.5 billion (1995 est.)

GDP real growth rate: -4.4%

GDP per capita: $8,100 (1995 est.)

GDP composition by sector:
agriculture: 6%
industry: 31%
services: 63% (1992 e