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Traditionally, Argentina Economy was dependent primarily on agriculture, but has gained new horizon with the inclusion of industrial and service sectors in recent times. Before the mid-19 th century, the Economy in Argentina was considered to be poor and immobile unable to cope up and keep pace with the frequent day-to-day changes and developments occurring in the international financial system. However, around the 1870s, a significant expansion began in the economic sphere of the country, with the export of livestock products. This fast increasing economic trend noticed in Argentinean Economy recorded an average growth rate of 5 percent per annum. This indeed was a revolution, changing the entire existing outlook about the Economy in Argentina.
Argentina Economy derives a bulk of the wealth from the cultivation and export of different kinds of food grains and items like corn, oats, wheat, flax, tobacco, lemons, soybeans, grapes, linseed oil, tannin and oilseeds, produced in abundance mainly in the Pampas region, northern Patagonia and the areas surrounding the Monte oases. Apart from these diverse agricultural commodities, a number of animal products like wool, hide, beef and mutton bring in considerable amounts to the national treasury, by being exported to foreign lands, where they have some of the highest demands.
A major part of Argentina Economy is based on the mining of coal and other vast mineral reserves of the country. Production of gas and domestic oil has made the nation self-sufficient of these essential commodities, thereby helping the economy to become all the more stable. The high generation of hydro-electricity in the country is yet another means by which the country acquires considerable wealth.
The chief manufacturing industries of the country like canning, flour milling and meatpacking offer great support to the Economy in Argentina . They, together with petrochemicals, steel, automobile, textiles and chemicals industries lead to successful sale, accumulating reasonable money. It is the fast development of Argentina Economy that helps the country to import some essential products such as motor vehicles, chemicals, metals, machinery, plastics, and other manufactured goods from China, Chile, Brazil and the United States of America.
In recent decades, however, the Economy in Argentina has faced both inflation and recession. In spite of the presence of considerable economic problems like high unemployment and huge national debt, privatization and other economic reforms was initiated by President Menem during early 1990s to bring about unparalleled economic growth in the country, and rank it as having one of the fastest growing economies in the world.
