Sunday, September 2, 2018

Argentina Economy


The Argentine Peso dropped from 15 Pesos per USD to 30 Pesos per USD and Argentine banks moved interest rates from 45% to 60%. Inflation is approaching 32%. Argentina over-borrowed like Venezuela and has bond debt payments due. They are in trouble and will need to raise cash for now and do a better job of managing their debt.

Argentina was claimed by Spain in 1517 and grew as a Spanish colony. Argentina became independent in 1816.

Argentina has a population of 44.7 million, Labor force 17.9 million and a land area of 1.074 million square miles. 14.7% of the land is arable. Nominal GDP for 2018 is $639 billion. GDP by sector is mining 3.6%, construction 5.6%, agriculture, forestry and fishing 6%, transport and utilities 7.9%, government 9.5%, commerce and tourism 16.9%, manufacturing 17.2% and services 33%. Nominal per capita GDP is $14,342 per year. GDP growth was 3.7% in 2017.

Inflation in 2017 was 24.8%, Poverty 25.7% Unemployment is 7.2%. Labor force by occupation is government 6.3%, agricultural 7.3%, construction 7.6%, transport and utilities 7.8%, financial 9.4%, manufacturing 13.1%, commerce and tourism 21.4%, services 27.1%.

Main industries are steel, aluminum, motor vehicles, auto parts, appliances, electronics, machinery, equipment, cement, leather, furniture, glass, chemicals, textiles, pharmaceuticals, tobacco, publishing and food products.

Exports $56.76 billion in soybeans, petroleum, gas, corn, wheat and vehicles sold to Brazil 17%, China 8.6% and US 5.9%.

Imports $57.18 billion in machinery, motor vehicles, petroleum, gas, organic chemicals and plastic from Brazil 22.4%, US 16.3%, China 15.5% and Germany 5.1%.

Public Debt is 222.7% (bonds 68%) plus Government debt to GDP 44%.

Government revenue $142.9 billion from VAT 20.1%, Tariffs 15.1%, Income tax 6.3% and sales tax 9%.

Government expenses $167.3 billion for social security 38.8%, subsidies and infrastructure 22.5%, debt service 9.2%, education and research 8.8%, welfare 5.4%, healthcare 3.4%, security 3.1% military 2.1%, other 6.7%.

Foreign reserves $61.61 billion.


Norb Leahy, Dunwoody GA Tea Party Leader

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