Argentina’s Economic Development

Argentina stands second in terms of the Human Development Index in Latin America. The Nation also occupies the second spot in terms of per capita GDP (in terms of purchasing power parity) among Latin American countries. The nominal GDP per capita places Argentina in the 30th spot in the world but in terms of PPP, it stands 23rd. The World Bank considers Argentina as a secondary emerging market and it shares an important place among G-20 major Nations. In recent times amidst a global financial crisis, Argentina is experiencing a comparatively slower economic growth. (Human Development Reports. Human Development Reports, Human development Index. HKTDC)Engine of Growth
Rich in Natural resources, Argentina is led by an outward-looking agricultural sector and a comparatively diversified industrial sector. The manufacturing sector is the single largest sector of Argentina and is well tied up with the agricultural sector and constitutes two-thirds of total exports. The country is extremely enriched in human capital with a literacy rate near 97.2%. A rate of employment of 76% in the tertiary sector portraits the fact that the Argentine economy is led by the service sector as well. The contribution to GDP by the service sector is 56.7% (CIA WORLD FACTBOOK). However, the service sector can not flourish with sustainability without a proper Industrial base and a rate of industrial growth at 6.8% clearly depicts the harmony between the tertiary and the secondary sector.

The importance of natural resources in the Argentine economy can be learned from the fact that the country exports 339,900 billion barrels of crude oil per day and that earns valuable foreign exchange for the nation. (CIA FACT BOOK) Though, less in magnitude but the nation still exports 2.6 billion cubic meters of natural gas. Finally, the agricultural sector exports unprocessed agriculture goods and constitutes one-fifth of the total exportable in value terms. For Argentina, it can be unambiguously stated that its engine of growth is not a particular industry or sector rather harmony and cooperation among all the sectors.&nbsp.