Changes

==Economy==

==Economy==

[[Image:Patagonia Agentina.jpg|right|300px|Patagonia, Argentina]]

[[Image:Patagonia Agentina.jpg|right|300px|Patagonia, Argentina]]

Argentina's economy has sustained a robust recovery following the severe 2001/2002 economic crisis, with 4 consecutive years of over 8% growth in real gross domestic product (GDP). Argentine GDP reached U.S. $213 billion in 2006, approximately U.S. $5,460 per capita, with real investment up 18.7%. Economic expansion is creating jobs, with unemployment down from 20.4% in the first quarter of 2003 to 9.8% in the first quarter of 2007. Poverty levels have also dropped dramatically; 26.9% of the population in the 28 largest urban areas remained below the poverty line in the last half of 2006, down from over 50% in the immediate aftermath of the economic crisis.  

 

Argentina's economy had sustained a robust recovery following the severe 2001/2002 economic crisis, with 4 consecutive years of over 8% growth in real gross domestic product (GDP). Argentine GDP reached U.S. $213 billion in 2006, approximately U.S. $5,460 per capita, with real investment up 18.7%. Economic expansion is creating jobs, with unemployment down from 20.4% in the first quarter of 2003 to 9.8% in the first quarter of 2007. Poverty levels have also dropped dramatically; 26.9% of the population in the 28 largest urban areas remained below the poverty line in the last half of 2006, down from over 50% in the immediate aftermath of the economic crisis.  

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Its post-crisis move to a flexible exchange rate regime and favorable international commodity and interest rate trends were catalytic factors in supporting renewed growth, allowing the government to accumulate a reserve cushion (over $40 billion as of June 2007) to help insulate the economy from external shocks. A higher tax burden and the recovery's strong impact on revenues allowed the government to record a primary fiscal surplus in 2006 equivalent to 3.5% of GDP. Argentina should continue to perform well in 2007 with GDP growth projected in the 7.5%-8% range. A range of economic experts have identified challenges to sustaining high levels of economic growth in the future, including capacity constraints; the need for substantial new investment in primary infrastructure; potential energy shortages in the face of high growth and energy prices below international market levels; and inflation (9.8% in 2006) and the government's heterodox policies to contain it, including pressure on the private sector to limit price increases.  

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Its post-crisis move to a flexible exchange rate regime and favorable international commodity and interest rate trends were catalytic factors in supporting renewed growth, allowing the government to accumulate a reserve cushion (over $40 billion as of June 2007) to help insulate the economy from external shocks. A higher tax burden and the recovery's strong impact on revenues allowed the government to record a primary fiscal surplus in 2006 equivalent to 3.5% of GDP. Argentina should continue to perform well in 2007 with GDP growth projected in the 7.5%-8% range. A range of economic experts have identified challenges to sustaining high levels of economic growth in the future, including capacity constraints; the need for substantial new investment in primary infrastructure; potential energy shortages in the face of high growth and energy prices below international market levels; and inflation (9.8% in 2006) and the government's heterodox policies to contain it, including pressure on the private sector to limit price increases.