Argentina

IV

Economy

Argentine manufacturing and mining industries make the greatest contributions to the economy. The country’s main manufacturing enterprises are chemicals, food, paper, and pulp. Agricultural products and the raising of livestock, however, are still important parts of the economy, and Argentina is one of the world’s leading cattle- and grain-producing regions. The country also has substantial deposits of petroleum and natural gas. Tourism plays a significant part in the Argentine economy. Neighbouring South Americans are attracted to Buenos Aires city life, the skiing resorts in the Córdoba highlands, and the coastal resort of Mar del Plata. In 2006 there were an estimated 4.1 million visitors to Argentina.

Economic growth, lower inflation, and increased foreign investment followed the economic reforms that began in 1991. The reforms included the privatization of a number of state-owned industries, the lowering of trade barriers, and widespread deregulation. However, the Mexican currency crisis of 1995 precipitated an austerity programme, and unemployment remained very high. In 2001, when Argentina defaulted on its debt payments, the debt owed was estimated at more than US$130 billion and the unemployment rate was running at more than 20 per cent. The GNP was estimated to be US$137,326 million in 2004, giving a per capita income of US$5,150.

A

Agriculture, Forestry, and Fishing

In normal years, Argentina raises enough agricultural products not only to fill domestic needs but also to export surpluses to foreign markets. Of Argentina’s land area of about 280 million hectares (692 million acres), about 52 per cent is used for pasturing cattle and sheep herds, around 22 per cent is forest and wasteland, and about 4 per cent is used for permanent crops; about 9 per cent of the country’s land area is arable. The Pampas is the most important agricultural zone of the country, producing wheat and cereal grains. Irrigated areas, from the Negro north through Mendoza, San Juan, Tucumán, and Jujuy, are rich sources of fruit, sugar cane, and wine grapes.

Livestock-raising and slaughtering are major enterprises in Argentina, as are the refrigeration and processing of meat and animal products; total annual meat production exceeds 2.7 million tonnes. In 2006 there were about 50.8 million head of cattle, 12.4 million sheep, and 1.5 million pigs in Argentina. In addition, there were about 3.7 million horses; Argentine horses have won an international reputation as racehorses and polo ponies.

Despite declines during the 1980s, livestock export still plays an important role in foreign trade. Earnings from meat, hides, and skins in 1993 were about US$792 million, or about 5 per cent of total export earnings. Argentina has long ranked as one of the world leaders in the export of raw meat. Cooked and canned meats are increasingly important exports.

Large quantities of wool are produced and exported; in 2006 about 60,000 tonnes of wool were produced. About 40 per cent of all sheep in Argentina are raised in the Patagonia region.

The major crops in Argentina are wheat, soya beans, sugar cane, and maize. Argentina is among the major producers of wheat in the world. In 2006 the annual sugar cane crop was about 18.8 million tonnes, soya beans 40 million tonnes, maize 14.4 million tonnes, and wheat 14 million tonnes.

Other major field crops include sorghum, flaxseed, sunflower seeds, cotton, potatoes, rice, maté, peanuts, and tobacco, as well as a considerable crop of grapes, oranges, lemons, and grapefruit.

Situated mainly in mountain areas distant from centres of population, the 45,000,000 hectares (111,195,000 acres) of woodland are relatively unused. Among the most exploited woods are elm and willow, for cellulose production; white quebracho, for fuel; red quebracho, for tannin (used for tanning leather); and cedar, for the manufacture of furniture. Other economically important woods are oak, araucaria, pine, and cypress.

Argentina’s fisheries, potentially highly productive, have not been fully exploited, although production increased steadily in the 1960s, 1970s, and 1980s. In 2005 the catch was about 933,902 tonnes—mostly hake, anchovy, mackerel, and dorado.

B

Mining

Although the country has a variety of mineral deposits, including oil, coal, and a number of metals, mining has not been fully exploited. In recent decades, however, production of oil and coal, in particular, has increased significantly. In terms of value, the chief mineral product is oil. In the early 1990s annual production of crude oil was 28.6 million tonnes, furnishing virtually all of the country’s needs; offshore reserves are expected to boost production levels. In 1993 the oil industry was privatized. The country also produces significant amounts of natural gas. Relatively small quantities of gold, silver, copper, lead, zinc, iron, tin, tungsten, mica, uranium, and limestone are mined.

C

Manufacturing

Most industry is centred in Buenos Aires. About 20 per cent of the national workforce is employed by manufacturing establishments. The country’s oldest and largest industry is the processing and packaging of foodstuffs. The textile industry ranks second. Other major industries produce rubber goods (both natural and synthetic), cement, chemicals, paper, plastic, and petroleum products. Steel production is rapidly expanding; in the mid-1990s yearly steel production was about 3.3 million tonnes, and the motor industry produced 227,000 motor vehicles in 1995.

D

Energy

Most rivers and falls with potential energy are located far from industrial centres, but despite these technical limitations water resources are being developed in Argentina at a rapid rate. Major hydroelectric projects undertaken in the 1970s and 1980s were located in northern Patagonia, the Yocreta Dam and other sites on the Paraná River, and on the Uruguay River (in cooperation with Uruguay). Overall, about 83.3 billion kWh of electricity were produced yearly in Argentina in 2003, of which about 40 per cent came from hydroelectric installations. Nuclear power accounted for 8 per cent, and conventional thermal plants for 48 per cent.