[123], Aerolíneas Argentinas is the country's main airline, providing both extensive domestic and international service. [145], Inaugurated in 1913, the Buenos Aires Underground was the first underground rail system built in Latin America, the Spanish speaking world and the Southern Hemisphere. The first of the three nuclear reactors was inaugurated in 1974, and in 2015 nuclear power generated 5% of the country's energy output.[124]. In August 2019, Paulo Guedes, the economics minister known in Brazil as the “superminister” due to his influence in government, has made it clear that Brazil could leave the bloc in case of a leftist victory in Argentina. [50] The global recession did affect the economy in 2009, with growth slowing to nearly zero;[46] but high economic growth then resumed, and GDP expanded by around 9% in both 2010 and 2011. ESTADO Y FERROCARRIL DESPUÉS DE LAS PRIVATIZACIONES, Detalles del proyecto para conectar todos los ferrocarriles urbanos debajo del Obelisco, Otro salto en la recuperación de soberanía, Es ley la creación de Ferrocarriles Argentinos, Ferrocarriles Argentinos: Randazzo agradeció a la oposición parlamentaria por acompañar en su recuperación, Harán una inversión de US$ 2400 millones en el Belgrano Cargas, "Los nuevos trenes del Mitre: asombro en los pasajeros y viajes más cómodos", "Buenos Aires commuter routes renationalised", "Los nuevos trenes a Mar del Plata funcionarán desde este viernes" on Telam, Salió de Retiro el primer tren 0km con pasajeros a Rosario, "Empezó a circular el tren que une Posadas y Encarnación", Aumentó un 12% la cantidad de usuarios que usan el subte a diario, "Más de 25 millones de pasajeros aéreos transportados en Argentina", "El 75% del rojo comercial de la industria, en cinco rubros", "Automotrices deberán exportar un dólar por cada dólar que importen", "Cristina presentó un proyecto para la expropiación de las acciones de YPF", "Repsol Deal to Open Argentine Energy Investment, Capitanich Says", "Evolución de la Inversión Extranjera Directa en Argentina", "Argentina, destino elegido por la inversión extranjera", "La inversión extranjera directa en la Argentina subió 54% en 2010", "Argentina recibió mayor inversión extranjera", "Inversión extranjera en la Argentina: mitos y realidades", "Embargaron fondos del Central en EE.UU. [95] Beverages are another significant sector, and Argentina has long been among the top five wine producing countries in the world; beer overtook wine production in 2000, and today leads by nearly two billion liters a year to one. Around 48% of visitors arrived by commercial flight, 40% by motor travel (mainly from neighboring Brazil), and 12% by sea. The country had also become self-sufficient in fuel. Fair Observer does not use personal data collected from its website for advertising purposes or to market to you. Argentina has significant renewable energy resources. [177] Beginning in 2015, the government again began to call for competitive bids from the private sector to provide a weekly independent inflation index. "The GeGaLo index: Geopolitical gains and losses after energy transition". [167] The loan would reportedly be worth $30 billion. [160] The global crisis cut this figure to US$4 billion in 2009; but inflows recovered to US$6.2 billion in 2010. Since both countries have faced economic hardship in the last few years, it is not a good time for them to antagonize their key business partners. [195], In the mid-1970s, the most affluent 10% of Argentina's population had an income 12 times that of the poorest 10%. Not to be confused with the Central Bank, this institution now accounts for 30% of total deposits and a fifth of its loan portfolio. An important number of these projects are being financed by the government through trust funds, while independent private initiative is limited as it has not fully recovered yet from the effects of the Argentine economic crisis. [171] Argentina's unemployment rate similarly declined from 25% in 2002 to an average of around 7% since 2011 largely because of both growing global demand for Argentine commodities and strong growth in domestic activity. LADE is a military-run commercial airline that flies extensive domestic services. By the way, they are close friends. [114], During the 1990s, Argentina's financial system was consolidated and strengthened. A network of pipelines (next to Mexico's, the second-longest in Latin America)[citation needed] send raw product to Bahía Blanca, center of the petrochemical industry, and to the La Plata-Greater Buenos Aires-Rosario industrial belt. Under the 1994 U.S.–Argentina Bilateral Investment Treaty, U.S. investors enjoy national treatment in all sectors except shipbuilding, fishing, nuclear-power generation, and uranium production. Argentina vs. Brazil; Economy; Compare vs for Submit. Be on the lookout for your Britannica newsletter to get trusted stories delivered right to your inbox. [195] These heightened levels of inequality had improved to 26 times by 2006,[196] and to 16 times at the end of 2010. Breaking with tradition, he said he would not attend Fernandez’s inauguration ceremony and would not even send a representative. Its gross national product (GNP), GNP per capita, and value added from manufacturing are also among the highest in the region. [118] Tourism from abroad contributed US$5.3 billion, having become the third largest source of foreign exchange in 2004. [49], The economy nearly doubled from 2002 to 2011, growing an average of 7.1% annually and around 9% for five consecutive years between 2003 and 2007. Finally, taking into account the recent wave of demonstrations across the region, such as in Chile, Ecuador, Perú and Bolivia, on top of the dramatic situation in Venezuela, it would be important for South America that Brazil and Argentina keep their rivalry to the football pitch, between Neymar and Messi. [109], Trade in services remained in deficit, however, with US$15 billion in service exports in 2013 and US$19 billion in imports. The spread of wheat, corn (maize), and flax cultivation roughly conformed to that of the estancia region of the Pampas. Meat and grain were exported to expanding markets in Europe in exchange for fuel and manufactured products. Argentina's transport infrastructure is relatively advanced, and at a higher standard than the rest of Latin America. However, although agricultural raw materials are over 20% of the total exports, agricultural goods still account for over 50% of exports when processed foods are included. Manufacturing became the largest single component of the gross domestic product (GDP). [125] Solar power is being promoted with the goal of expanding installed solar capacity from 6 MW to 300, and total renewable energy capacity from 625 MW to 3,000 MW.[126]. However, a sustained recession at the turn of the 21st century culminated in a financial crisis in which the government—led by a quick succession of presidents and presidential resignations—defaulted on its foreign debt and again devalued the Argentine peso. Deposits grew from less than US$15 billion in 1991 to over US$80 billion in 2000, while outstanding credit (70% of it to the private sector) tripled to nearly US$100 billion. Inflation first became a chronic problem during this period[37] (it averaged 26% annually from 1944 to 1974);[39] but though it did not become fully "developed," from 1932 to 1974 Argentina's economy grew almost fivefold (or 3.8% in annual terms) while its population only doubled. Argentine industry became important when mostly foreign-dominated manufacturers began exporting processed foods. From war and rivalry to friendship and alliance, this complex relationship has spanned more than two centuries. Argentina workforce is 18 million while Brazil has 111 million. Metal ore exports soared from US$200 million in 1996 to US$1.2 billion in 2004,[92] and to over US$3 billion in 2010.[84]. Brazil’s GDP is 46 times that of Paraguay, 31 times that of Uruguay and 3.5 times larger than Argentina’s. [33] According to a study by Baten and Pelger and Twrdek (2009), where the authors compare anthropometric values, i.e. Around 5.7 million foreign visitors arrived in 2017, reflecting a doubling in visitors since 2002 despite a relative appreciation of the peso. [84] Sheep-raising and wool are important in Patagonia, though these activities have declined by half since 1990. In contrast, the transmission and distribution sectors are highly regulated and much less competitive than generation. [172][175][176] Official inflation data are disregarded by leading union leaders, even in the people sector, when negotiating pay rises. [148] This includes an extensive network of canals, though Argentina is blessed with ample natural waterways as well, the most significant among these being the Río de la Plata, Paraná, Uruguay, Río Negro, and Paraguay rivers. [63], While the Argentine Government considers debt left over from illegitimate governments unconstitutional odious debt,[64] it has continued servicing this debt despite the annual cost of around US$14 billion[65] and despite being nearly locked out of international credit markets with annual bond issues since 2002 averaging less than US$2 billion (which precludes most debt roll over). The economic performance of this decade, however, suggests Brazil does not belong in that league. These statistics are collected and processed using the Google Analytics service. The resulting influx of foreign capital and increased industrial productivity helped to revitalize the economy. Generation occurs in a competitive and mostly liberalized market, in which 75% of the generation capacity is owned by private utilities. Bolivia is in the process of accession, and Chile, Colombia, Peru, Guyana and Suriname are associated states. [66], Argentina has nevertheless continued to hold successful bond issues,[67][68] as the country's stock market, consumer confidence, and overall economy continue to grow. These latter include over three million big ticket items, as well as an array of electronics, kitchen appliances and cellular phones, among others. The election marked the victory of former army captain and right-wing congressman, Jair Bolsonaro. Cereals, mostly maize and wheat, which were Argentina's leading export during much of the twentieth century, make up less than one tenth now. [170] Poverty measured by living conditions improved more slowly, however, decreasing from 17.7% in the 2001 Census to 12.5% in the 2010 Census. Argentina’s economy, which is one of the more powerful in the region, is dependent on services and manufacturing, although agribusiness and ranching dominated the economy for much of the 19th and 20th centuries. [112], Argentines, who have long been active travelers within their own country,[119] accounted for over 80%, and international tourism has also seen healthy growth (nearly doubling since 2001). Having recovered its lost ground by the late 1930s partly through import substitution, the economy continued to grow modestly during World War II (in contrast to the recession caused by the previous world war). Bolsonaro made a firm stand against the leftist parties during his campaign, placing an emphasis on the corruption scandals during the left’s time at the helm. In 2019, Kirchner allied herself with the center-left Alberto Fernandez as his vice-presidential candidate. At the same time, growing government spending, large wage raises, and inefficient production created a chronic inflation that rose through the 1980s, when it briefly exceeded an annual rate of 1,000 percent. [23] Business Process Outsourcing became the leading Argentine service export, and reached US$3 billion. In Brazil, the 2018 election came on the heels of political and economic turmoil of Dilma Rousseff impeachment in 2016 and Lula’s conviction in early 2018. Brazil. Nonetheless, the most probable scenario is that Brazil won’t leave Mercosur, but that the relationship with Argentina will cool. [83], Soy and its byproducts, mainly animal feed and vegetable oils, are major export commodities with one fourth of the total; cereals added another 10%. [29], Argentina's currency declined by about 50% in 2018 to more than 38 Argentine pesos per U.S. Dollar and as of in that year is under a stand-by program from the International Monetary Fund.