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. The
economy registered an impressive 6% advance in 1994, fueled largely by
inflows of foreign capital and strong domestic consumption spending.
The government's major short term objective is encouraging exports,
e.g., by reducing domestic costs of production. At the start of 1995,
the government had to deal with the spillover from international
financial movements associated with the devaluation of the Mexican
peso. In addition, unemployment had become a serious issue for the
government. Despite average annual 7% growth in 1991-94, unemployment
surprisingly has doubled - due mostly to layoffs in government bureaus
and in privatized industrial firms and utilities and, to a lesser
degree, to illegal immigration. Much remains to be done in the 1990s
in dismantling the old statist barriers to growth, extending the
recent economic gains, and bringing down the rate of unemployment.

National product: GDP - purchasing power parity - $270.8 billion (1994
est.)

National product real growth rate: 6% (1994 est.)

National product per capita: $7,990 (1994 est.)

Inflation rate (consumer prices): 3.9% (1994 est.)

Unemployment rate: 12% (1994 est.)

Budget:
revenues: $48.46 billion
expenditures: $46.5 billion, including capital expenditures of $3.5
billion (1994 est.)

Exports: $15.7 billion (f.o.b., 1994 est.)
commodities: meat, wheat, corn, oilseed, manufactures
partners: US 12%, Brazil, Italy, Japan, Netherlands

Imports: $21.4 billion (c.i.f., 1994 est.)
commodities: machinery and equipment, chemicals, metals, fuels and
lubricants, agricultural products
partners: US 22%, Brazil,