ARGENTINA’S ECONOMY Agron/Econ 496 Sergio Lence February, 2009

POPULATION, 2007 Argentina 39 million United States 302 million China1,300 million India1,073 million World6,390 million

World Population Density Population (bottom) and Internet (top) densities

World Gross Domestic Product (1999)

Earth’s Satellite Picture at Night

Gross National Income (2007) Argentina U.S. Total Current U$S 0.24 trillion 13.9 trillion PPP U$S 0.51 trillion 13.8 trillion Per Capita Current U$S 6,050 46,040 PPP U$S 12,990 45,850

Nominal GDP vs. PPP GNP

Argentinean Economy Upper-middle income, Western-style market economy (World Bank classification): Low income (< $935 GNI per capita) 49 countries (e.g., Haiti) Lower-middle income ($936-$3,705) 54 countries (e.g., Peru, Ecuador, Paraguay) Upper-middle income ($3,706-$11,455) 41 countries (e.g., Argentina, Brazil, Mexico) High income (> $11,455) 65 countries (e.g., US, Canada)

Composition of GDP (%)

CO2 Emissions Per Capita

Argentinean Economy: History Long history of government involvement Military governments (until 1982) Populist governments (e.g., Peron, Peronist party) Major economic reforms starting in the 1990s Privatization Currency conversion Major economic crisis in 2001/02

Argentinean Peso Currency of Argentina 1 U$S = 3.49 Argentinean Pesos Introduced in 1992

Argentinean Peso

Argentinean Peso: History PESO Moneda Nacional (starting in 1881) PESO Ley (starting in 1970) 1 Peso Ley = 100 Pesos Moneda Nacional PESO argentino (starting in 1983) 1 Peso argentino = 10,000 Pesos Ley AUSTRAL (starting in 1985) 1 Austral = 1,000 Pesos argentinos PESO (starting in 1992) 1 Peso Ley = 10,000 Australes

Argentinean Peso: History Various Argentine currencies towards the US Dollar

Monetary Conversion Rates Fall in value of the Argentine currency vs. U.S. dollar

Monetary Conversion Rates Fall in value of the Argentine currency vs. U.S. dollar

Monetary Conversion Rates Argentinean Pesos per U.S. dollar

INFLATION

ANNUAL INFLATION ArgentinaUS 19984% %4% %4% %1% %2% 20039%3% 20049%4% 20059%3% 20068%3% 20079%2%

GDP Growth Per Capita

Annual GDP Growth (%)

Life Expectancy at Birth, 2004

GINI Index (higher income inequality, higher index) Argentina 51 U.S.41

Infant Mortality

Argentinean Economy: Current Concerns Large government deficit Government-distorted economy Inflation Unfavorable world market situation Government vs. Farmers

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