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Financial risk of trading with Argentina is increasing
Growth is expected to slow down to 3.5% after more than 8% in 2010 and 2011, as exports slow down and commodity prices are no longer rising. Inflation remains above 20%
Massive state intervention continues: Import restrictions and exchange controls lead to more payment delays for foreign exporters
Capital flight has sharply increased in 2011, significantly deteriorating Argentina’s liquidity position. External accounts continue to weaken and relations with international financial markets remain shaky. A final debt settlement with Paris Club is necessary
The government should also decrease public spending and lift foreign exchange restrictions. However, more arbitrary actions by the government cannot be ruled out as economic tensions mount
Real GDP growth (%)
Source: EIU/IMF
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General Information
Capital - Buenos Aires
Government type - Republic
Currency - Argentine peso (ARS)
Population - 40.9 million
Status - Upper middle income country
(GDP/capita: US-$ 10,778 in 2011)
Main import sources (2010)
- Brazil - 31.3%
- China - 13.6%
- Chile - 10.7%
- Germany - 5.7%
- Mexico - 3.2%
Main export markets (2010)
- Brazil - 21.3%
- China - 8.6%
- Chile - 6.5%
- USA - 5.2%
- The Netherlands - 3.5%
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Date December 2011
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Argentina
