Argentina

The Argentine economy slowed sharply in 2009. Towards the end of the year, however, signs of a pick-up in activity could be observed, and a strong macroeconomic upturn is accordingly expected in 2010. According to official statistics, aggregate GDP rose slightly in 2009. Goodsproducing sectors contracted significantly, however (3.5%). This result was mainly due to a decline in agricultural output and a contraction in demand, affecting exports, durable goods consumption and investment. The gross domestic investment rate was about 21.2% of GDP and this, while a lower figure than in 2008, translated into a substantial increase in real assets. Exports fell considerably and imports by even more, the result being an increase in the trade surplus. Declining external trade flows and weakened domestic economic activity affected tax revenues, even though public resources were boosted by the unification of the pensions system under the unfunded State pay-as-you-go scheme. In consequence of this and of strong growth in government spending, the country’s fiscal performance worsened. The national public sector registered a financial deficit of 0.8% of GDP and provincial governments one of 0.4%, with some of the latter struggling to meet their spending commitments. Average inflation for the year was lower in 2009 than 2008. According to national statistics, real wages rose considerably and poverty indices declined substantially despite weaker demand for labour, especially in manufacturing. Towards the end of the year, provision was made for families not covered by the formal benefits regime to receive a subsidy for each of their children provided these attended school. This measure will have a large impact on groups in extreme poverty.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions