Argentina Economy - Analysis Project Research Paper

genus Argentina Economy - Analysis Project - Research Paper ExampleArgentina frugality is the third biggest sparing in Latin America, with high standards of living and per capita income. Argentina is an upper middle-income preservation and exhibits the characteristics of a strong origination for future market size expansion, and increments in foreign direct investment. It also exhibits an augment in the pct of high technology exports as a share of the entire manufactured products. Argentina gains from rich subjective resources, high literacy rates of its population, an agricultural sector which is export oriented, and a diversified industrial base. Traditionally, Argentine economy had been agriculture based, but in the recent years, service and industrial sectors have grown in splendor (Paolera & Taylor 88). Prior to the 1880s, the country relied on the salted meat, leather, hide, and wool industries for the larger component of its foreign trade and the genesis of local income and earnings. Over the years, the country has experienced economic expansion in the various sectors. Argentina is among the planetary principal producers of agricultural commodities. The country is amongst the top producers and exporters of fruits and vegetables, maize, soybeans, honey, wheat and sorghum among others. In 2010, the agriculture sector peaked for 9 percent of the Gross Domestic Product (Paolera & Taylor 90). The manufacturing sector of the economy accounts for 19 percent of the countrys economy. The manufacturing and agriculture sectors of the economy are well integrated more than half of the countrys industrial exports are agricultural in nature. ... 0, the country experienced persistent economic crises, relentless current account and fiscal deficits, high inflation rates, escalating external debt, and capital outflows. A severe economic depression, escalating external and reality indebtedness, and bank run culminated in 2001 were the most serious social, political and economic crisis in the Argentina degenerate history. In December 2001, interim President Adolfo Rodriguez SAA declared a default on the governments external debt, which was the biggest in history. President Rodriguez resigned a few days after taking office (Baer & Fleisher 8).3 In early 2002, Rodriguezs successor, Eduardo Duhalde, declared an end to the pesos 10 years long 1-to-1 pin tumbler to the U.S. dollar. During this year, there was deterioration of the economy with real GDP being 18 percent lower compared to that of 1998 and about 60 percent of the Argentines were living under the poverty line. After six years, the economy started to grow with an come real GDP annual growth rate of 8.5 percent. The economy took advantage of previously inactive compass and industrial capacity, a bold debt restructuring and diminished debt burden, excellent global financial conditions, and expansionary fiscal and monetary policies. Also, the economy experienced high rates of inflation (Baer & Fleisher 10).3 However, in early 2007, President Nestor Kirchners presidential term responded to the inflation through price restraints on businesses and export taxes and controls. In late 2007, Cristina Kirchner succeeded her husband as President, and the quick growth of the economy of previous years started to slow down sharply in 2008. This was as a result of government policies, which reduced exports and the global economy fell into recession. The economy has recovered