Country Report Argentina

Financial risk of trading with Argentina is increasing

• Growth is expected to slow down to 3.5% after more than 8% in 2010 and 2011, as exports slow down and commodity prices are no longer rising. Inflation remains above 20%.

• Massive state intervention continues: Import restrictions and exchange controls lead to more payment delays for foreign exporters.

• Capital flight has sharply increased in 2011, significantly deteriorating Argentina's liquidity position. External accounts continue to weaken and relations with international financial markets remain shaky. A final debt settlement with Paris Club is necessary.

• The government should also decrease public spending and lift foreign exchange restrictions. However, more arbitrary actions by the government cannot be ruled out as economic tensions mount.

Real GDP growth (%)

Source: EIU / IMF

Fiscal balance (% of GDP)

 Source: EIU / IMF

   Download full country report on Argentina  

Download full country report on Argentina

 
General Information

Capital: Buenos Aires
Government type: Republic
Currency: Argentine peso (ARS)
Population: 40.9 million
Status: Upper middle income country
(GDP/capita: US$10,778 in 2011)
 
Main import sources (2010)

• Brazil: 31.3%
• China: 13.6%
• Chile: 10.7%
• Germany: 5.7%
• Mexico: 3.2%

Main export markets (2010)

• Brazil: 21.3%
• China: 8.6%
• Chile: 6.5%
• USA: 5.2%
• The Netherlands: 3.5%

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Date: December 2011