Wednesday, April 3, 2019

Argentina Inflation 2019


Argentina is monetizing its government debt and inflation is 50.7% in 2019 up from 47.6% in 2018. Unemployment is 9.6%. Poverty is 33%. Government Debt to GDP is 97.7%.

It is government top heavy and needs to privatize its industries, shrink government and expand the private sector. Trade deficit is $6 billion. Its exports are in direct competition with the US expansion. Their credit rating is poor, so their interest paid on their debt is high. They implemented socialist policies over the past decades and it’s coming home to roost. Their government spent too much and now they’re screwed.

In 2018, Argentina had a Nominal GDP of $475.429 billion and negative growth of minus 2.8%. Nominal Per Capita GDP was $10,667 in 2018.

Argentina has a population of 45,101,781 and a land area of 1.074 million square miles.  Labor force is 18 million.

GDP by Sector is agriculture forestry and fishing 6%, mining 3.6%, manufacturing 17.2%, commerce and tourism 16.9%, construction 5.6%, government 9.5%, transport communication and utilities 7.9%, business and social services 33.3%. 

Labor force occupation is agriculture 7.3%, manufacturing 13.1%, construction 7.6%, commerce and tourism 21.4%, transport communications and utilities 7.8%, financial real estate and business service 9.4%, public administration and defense 6.3%, social services and other 27.1%

Main Industries include food processing, beverages, motor vehicle auto parts, appliances, electronics, machinery, equipment, chemicals, pharmaceuticals, glass, steel, aluminum, cement, textiles, tobacco, publishing, furniture and leather. Ease of doing business 119th.

Exports were $58 billion including soybeans, corn, wheat, petroleum, gas and vehicles sold to Brazil 16.1%, US 7.9%, China 7.5% and Chile 4.4%.

Imports were $64 billion including machinery, motor vehicles, petroleum, natural gas, organic chemicals and plastics from Brazil 26.9%, China 18.5%, US 11.3% and Germany 4.9%

Government revenue was $120.6 billion, spending was $158.6 billion. External Debt is $214.9 billion. Foreign reserves $61.6 billion. Current account -$31.32 billion.

Government revenue included social security 26%, income tax 26%, VAT national sales tax 20%, trade duties 15%, financial tax 6.3%, excise and other tax 9%.

Government spending was $158.6 billion and includes social security 39%, subsidies and infrastructure 22.5%, debt service 9.2%, education culture and research 8.8%, social assistance 5.4%, health 3.4%, security 3.1$ defense 2.1%, other 6.7%.


Norb Leahy, Dunwoody GA Tea Party Leader

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