Highlights Argentina

The Argentine economy achieved its sixth consecutive year of growth. However, it has not been immune to the negative impact of the international financial crisis on the real economy.

even though all the components of the aggregate demand experienced positive variations, they were lower than the average changes of previous years, a fact that encouraged the implementation of government policies in an effort to drive consumption and investment.

The depression in domestic demand and the decline in activity levels eased the pressure on the general price level, which remained below the index of the previous year. However, the methodology used by the National Institute of Statistics and Census (INDEC) is still being questioned, thus showing a discrepancy between the official inflation rate and private consultant’s estimates.

The trade balance was positive, largely as a result of the extraordinary increase in commodity prices of Argentine exports in the first half of the year. Imports grew, but to a lesser extent than exports. This expansion was due to economic growth, and in part, as a result of the depreciations of Argentina’s main trade partners.

The fiscal balance continued to show both a primary and a financial surplus, mainly supported by income from the external sector and the funds obtained through the reform of the social security system, which involved the transfer of the Retirement and Pension Fund to Government System.Spending patterns showed a decrease in transfers to the private sector since the Government allowed increments in both energy and transportation tariffs.

The pillars that supported the expansion during the period following the crisis that took place in 2001 weakened in 2008. Despite of this, a considerable growth was achieved, justified among other factors, by the increase in domestic demand as well as an increase in commodities’ prices in the first part of the year. However, as of August 2008, the potential negative impact of the international financial crisis led to a substantial decline of those prices and furthermore in 2008, domestic demand began to show signs of deceleration. These events urged the implementation of policies aimed at continuing in the growth path of the upcoming years.

Highlights Anteriores

• Highlights 2007 - 2008 / Disponible sólo versión en Inglés (PDF - 101 Kb)
• Highlights 2006 - 2007 / Disponible sólo versión en Inglés (PDF - 153 Kb)
• Highlights 2005 - 2006 / Disponible sólo versión en Inglés (PDF - 272 Kb)