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Argentina Economy - Research Paper Example

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[Subject Code] Argentina Economy Argentina enjoys a very strong position in South America having the third largest economy in the continent. Being the second largest country in Latin America and a very high population size, the country promises great potential for growth in the long run.The official currency is the Argentine Peso (ARS).With a high percentage of literate population the opportunities are endless…
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Argentina Economy
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Argentina Economy

Download file to see previous pages... GDP Per Capita Source: (tradingeconomics.com; Argentina GDP Per Capita; Retrieved: 2nd April 2012) Analyzing the ten years, we clearly see that the overall trend of per capita GDP has been rising. The per capita GDP has approximately doubled in the last ten years from $6300 to around $10,800 in 2011. We do see that the economic slow down had an effect on Argentina since its growth stagnated between 2009-2010 but has risen considerably since. The overall outlook for 2012 is also very positive. Inflation Rate: Source: (tradingeconomics.com; Argentina Inflation Rate; Retrieved: 2nd April 2012) Argentina has always been ridden with high inflation issues. Specially at the start of the millenium the CPI figures were sky high around 40% .The dramatic decrease in CPI was because of devaluation of its currency. Since then various measures have been underway to keep the inflation rate in and around 10%. Although some unofficial figures state that inflation is twice as much, around 25%. The inflation issue continues to be a main concern for the country and measures are to be taken with repect to this to ensure any further growth in the country. UnEmployment Rate: Source: ( tradingeconomics.com; Argentina Unemployement Rate; Retrieved: 2nd April 2012) The overall umployement figures for Argentina have been impressive. Unemployement was very high in 2002 around 21%. Since then, there has been a steady decline in unemployement rate to around 7% in 2012. The unemployement numbers have decreased which certainly is a positive sign for the country which is because of the growing demand for argentinian products and growing local demand. With growing domestic as well as international demand the country is creating jobs for its citizens and the figures may get better in 2012. Source: (Indexmundi.com; Argentina Poverty Rate; Retrieved: 2nd April 2012) The poverty rate for Argentina has declined since 2003 from a staggering 48% to around 12% in 2010. The decrease in employment has largely been due to the strenghtening economy and higher opportunities for growth in manufacturing and agriculture.Argentina has now a very high Human Development Index and is now in an upper middle income economy in the world. The poverty rate does seem to be getting higher and measures need to be taken to address this issue.Population being below the poverty line was estimated at around 10% in the CIA factbook, however the figure is still alarming. Democracy Index and Level Of Corruption: A research study conducted by the Economist Intelligence Unit compiled a list of 167 democracies around the world to identify their level of democrarcy based on a number of factors most notably; political participation,civil liberties,and functioning of the government. In this survey Argentina was placed at number 51 of the 167 countries with an index of 6.84 which translated to flawed democracy. 10 being the highest, full democracy and 0 being authoritarion regimes. ( (Kekic) The country has democratically elected governement although there are some flaws in the system that have made its democracy level go down a bit. The transparency International conducted a study to identify corrupt and non corrupt nations by providing an index ...Download file to see next pagesRead More
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