Argentina

Argentina is located in southern South America, with an area of 2,780,400 km², it is the 8th largest country in the world and the second largest in Latin America. The population, as of January 1, 2023, is 46.5 million, with a density of about 17 people per km². The capital, Buenos Aires, is one of the largest cities in the Southern Hemisphere, with around 3 million residents (6% of the total population) and a metropolitan area hosting about 15 million people.

Economic Situation

In 2023, Argentina’s GDP was estimated at $643 billion, with a contraction of -2.5% compared

to the previous year. The GDP per capita is $13,900. Exports reached $87.5 billion, while imports were $77.8 billion, generating a trade surplus of $9.7 billion. The country faced a growing trade deficit and inflationary pressures, with inflation estimated at 115% at the end of the year. The unemployment rate was estimated at 11% in 2023, while the poverty rate remained high, affecting around 40% of the population.

Forecasts

Argentina’s economic situation is characterized by ongoing inflation, fiscal deficits, and high public debt. In 2024, the forecast is for an economic contraction of -0.5%, with inflation expected to remain high, around 120%. The country faces difficulties in managing its external debt, with significant international reserves depletion.

Country Risk

Argentina presents a high-country risk due to its macroeconomic instability, high inflation, and debt crisis. The country is also affected by social unrest and political polarization, which hinder long-term economic planning.

Foreign Direct Investments

Argentina has attracted FDI, particularly in the agricultural, energy, and natural resources sectors. However, political and economic instability and regulatory challenges have deterred investment, and foreign capital flows have been volatile.

Geopolitical Analysis

Internal Political Challenges

Argentina faces considerable political instability, with frequent changes in government and tensions between different political factions. This instability has undermined confidence in the country’s economic policies and has led to challenges in implementing long-term reforms.

Relations with the International Community

Argentina has maintained close ties with Brazil, Uruguay, and other Latin American nations, but its relationship with the United States and international financial institutions remains strained due to the country’s debt defaults and inflationary policies.