An overview of Argentina`s Economy and the State of its Economic Research Paper

An everywhereview of genus genus Argentinas Economy and the State of its Economic Progress - Research account Example?s interim President, Adolfo Rodriguez Saa, announced a default on foreign debt of the government, which was the largest in the dry lands sparing history. Adolfo stepped down just a few days after assuming office. In early 2002, Adolfos successor, Eduardo Duhalde put to an end the pegging of the peso to the United States dollar. During that year (2002), Argentinas saving declined with real Gross Domestic Product (GDP) at 18 percent smaller than GDP in 1998. Approximately 60 percent of Argentines fell below poverty line in the same year. However, Argentinas real GDP bounced back and achieved annual growth rate of 8.5 percent from 2003 to 2008. This rebound was attributed to increase industrial capacity and literate workforce. The growth in real GDP was also as a result of Argentinas debt restructuring and reduction, implementation of expansionary monetary and fisca l policies and favorable global financial conditions. Argentinas Growth and Productivity from 1961-2006 Period GDP % TFP 1961-1970 1971-1980 1981-1990 1991-2000 2001-2006 4.4 2.6 -0.8 4.1 4.1 1.2 -0.1 -1.3 1.4 1.0 1961-2006 2.7 0.4 Source MECON and Coremberg et al. (2007). In early 2007, Argentina set about increased rate of inflation. The government led by President Nestor KIRCHNER, responded to the inflation by impose taxes on exports as well as export restraints. There were also price restraints on businesses across the country. However, in late 2007 when Cristina Fernandez De Kirchner succeeded her husband as the president of Argentina, the swift economic growth that had been experienced in the last six years began to stall. In 2008, the government of Argentina held back its exports before the 2008 recession absent global economies. In 2010 he countrys parsimoniousness bounced back from economic... This paper offers a encompassing analysis of the economy of Argentina in th e last decades and estimates the progress of the countrys economy over the years. Argentina has an interesting economic history and is one of the most researches about countries owing to the fact that it had win advanced development status by the beginning of the 20th century, but its economic growth retard afterwards. The countrys high rate of economic growth has been discontinuous following serious economic recessions, especially during the twentieth century.Argentina is amongst the countries endowed with rich natural resources. The country has very high literacy level. The artless sector is export-oriented with the nations industrial sector highly diversified. Because of intermittent economic crises, unrelenting deficits in its fiscal and current accounts, high and ever growing external debts as well as expectant flight, especially during the twentieth century, Argentina slipped from its advanced economic statusThe economic recession of December 2001 is considered the slash recession in Argentinas history. On December 2001, Argentinas interim President, Adolfo Rodriguez Saa, announced a default on foreign debt of the government, which was the largest in the countrys economic history.After the fretfulness of the 2009 global economic downturn, the economy of Argentina has not been very stable. In 2012, the countrys economy experienced a sharp slowdown. However, the economy showed some signs of recovery at the beginning of 2013.