Argentina

# Argentina Economic Profile

## Economic Overview

Argentina is an upper-middle-income country boasting the second-largest economy in South America. With a nominal GDP of approximately $490 billion in 2023, it has become an important economic center in the Latin American region. While the economy is diversified, the agriculture and food industry is a particular strength. The production of cereals such as wheat and corn, and the export of livestock products such as beef, have established a position in the international market and are major sources of foreign currency. The manufacturing industry is also developed, with the automotive and chemical industries supporting the economy.

## Recent Economic Trends

Argentina has faced a severe economic crisis over the past several years. Inflation has accelerated rapidly, reaching approximately 143% year-over-year in 2023, the extreme inflation being a serious problem. The rapid decline of the peso currency and depletion of foreign reserves have led to a currency crisis, with declining consumer purchasing power and economic uncertainty becoming severe. In early 2024, new President Javier Milei took office and initiated an aggressive economic reform program. This program includes reforms to the currency system, inflation suppression, and fiscal deficit reduction.

## Notable Points

Argentina's economic challenges are rooted in structural problems. Labor market fragility, regional economic disparities, and political instability are long-standing issues. However, abundant natural resources, particularly critical mineral resources such as lithium, provide growth opportunities in the energy transition era. The results of reform policies will be tested over the coming years, with inflation control and economic stabilization being the keys to recovery. Maintaining the continued competitiveness of the agricultural sector is also an important factor.