The economy of Argentina is the second-largest in South America, behind Brazil. The United Nations' Human Development Index ranks Argentina "very high," reflecting a literate population, export-oriented agriculture, and diversified industry. Under President Javier Milei, the country is a market economy, differing from the Peronist model earlier. The economy has rich natural resources; however, its performance has been volatile—growth spurts alternate with recessions—especially since the late 20th century, driving income inequality and poverty. Early in 20th century, Argentina's per capita GDP ranked among top 10 globally, at par with Canada and Australia and ahead of France and Italy.

The Argentine peso lost ~50% of its value in 2018 because of hyperinflation (falling from ~18–20 to >38 pesos per U.S. dollar), prompting an IMF stand-by program. It fell another 25% in 2019, 90% in 2020, 68% in 2021, and 50% in 2022, 54% in 2023, 30% in 2024, before rising in 2025. The FTSE Global Equity Index (2018) listed Argentina as an emerging market and G20 member. Prolonged capital controls led MSCI to reclassify it as a standalone market in 2021.

History

Argentina's economy has swung from one of the world's richest in the early 20th century to repeated cycles of boom, bust, and hyperinflation, driven by commodity dependence, political instability, and policy shifts. Below is a summarized timeline based on historical data, with updates to 2025 reflecting recent reforms under Milei.

Pre-20th Century Foundations (Before 1880s) Before the 1880s, Argentina's economy relied on salted meat, wool, leather, and hides for exports and income, with limited industrialization.

Golden age (1880–1905) Argentina was one of the wealthiest countries in the world:

From 1880–1905, British and French investments fueled livestock and grain exports, sparking rapid expansion and mass European immigration. GDP grew 7.5 times (8% annual average); per capita GDP rose from 35% to 80% of the U.S. level. A 2009 study noted GDP gains post-1870 but stagnant heights (proxy for welfare) until 1910, indicating uneven benefits.

During 1905–1941 growth slowed; although per capita GDP reached ~50% of U.S. levels by 1941, matching Western Europe's but with inequality.

Great Depression (1929–1932) The Great Depression severely contracted the Argentine economy by sharply curtailing foreign trade, triggering a structural shift away from agro-export dependence. In response, successive governments pursued import substitution industrialization, raising tariffs to shelter domestic manufacturers from foreign competition. The Roca–Runciman Treaty (1933), negotiated to preserve Argentine beef access to British markets following the Ottawa Conference, was widely criticized by Argentine nationalists as an asymmetrical concession to British commercial interests.

Perón era (1945–1955) Juan Perón nationalized the Central Bank, railways, and industries. Inflation averaged 26% annually (1944–1974); GDP per capita peaked in the early 1950s, but stagnated due to commodity slumps and nationalizations.

Argentine industry benefited from the inability of European countries to supply their products to the world market. Industrial manufactures were exported in considerable volumes, mainly to Latin America and the Caribbean. Some of the policies adopted at that time included rediscounts, the Export and Industrial and Commercial Stimulus Committee, the Industrial Promotion Laws, the creation of the State merchant fleet, credits from the Banco Industrial (1944), and the nationalization of the Central Bank of Argentina (1946). Following Keynesian theories, Perón sought to establish the welfare state, by increasing social security and improving income distribution. He did this through raising public spending and making simultaneous investments in different sectors such as defense, health, education, and housing. Production grew, and the increase in exports fed into an expansion of consumption.

Debt crisis and hyperinflation (1976–1990s) From 1976–1983, the National Reorganization Process attempted neoliberal policies under José Alfredo Martínez de Hoz ballooned debt; inflation hit 344% in 1983, the currency devalued 10x, while growth stalled.

Stagflation ensued from 1975–1990, driven by increasing debt, tax evasion, and flight; hyperinflation peaked from 1989–1990.

In 1991 under Domingo Cavallo, the government attempted reforms, pegging the peso to the dollar. With the money supply curbed, inflation fell to single digits. Liberalization/privatization boosted GDP 33% in four years. Erratic growth came after 1995. In 2001 a crisis shrank GDP by 20%, unemployment reached 25%, the peso declined by 70%.

Commodity boom and Kirchner recovery (2002–2015) From 2003–2011, expansionary policies and increased exports created >5M jobs. GDP nearly doubled (7.1% avg. annual, 9% 2003–2007). Real wages rose 72% (2003–2013). Postal, water, pensions, Aerolíneas Argentinas, YPF, railways were renationalized. A crisis stopped growth in 2009, although it rebounded to 9% (2010–2011).

During 2012–2015 capital controls, austerity, inflation, and trade slumps cut growth to 1.3% (2012–2014), edging up to 2.4% (2015).

Debt restructuring (2000s–2010s) From 2005 to 2010 Argentina restructured $100B in loans. In 2001 it defaulted. Some bondholders rejected the restructuring, preventing it from going final. Debt service reached ~$14B.

In 2018 the IMF completed a bailout – $30B as inflation hit 25%; interest rates reached 40% (world's highest). Inflation hit 54% in 2019 and 211% in 2023.

Milei: shock therapy (2023–2025)

In 2023 inflation crossed 100% and then 200%. Milei (elected with a 55.7% majority) devalued the peso 50–54% to ~800/USD. He cut subsidies/public works ($20B savings), achieved Argentina's first federal budget surplus since 2012.

In 2024, Milei cut 15,000 state jobs, sparking protests. Layoffs grew to over 24,000 by mid-year. Poverty peaked at 57% in January, falling to 38.9–39% in Q3. Inflation crashed to 2.4% in November, falling by almost half at 117.8%, down 93.6 percentage points from 2023's 211.4%. GDP fell between 3.8–4%.

In 2026, the Central Bank of Argentina (BCRA) met its dollar accumulation goal of 10.1 billion in the first six months of the year. Aggressive privatization and debt restructuring with the IMF has led to the S&P Global Ratings agency to upgrade Argentina's sovereign credit rating to a B−.

+Growth summary Period Driver GDP Growth (Annual Average %) Per Capita vs. U.S. (%) 1880–1905 Exports/Immigration 8 35 → 80 1905–1941 Industrialization 3–4 ~50 1945–1970s Nationalization 40–45 1976–1990 Debt/Inflation 30–35 1991–2001 Peg/Liberalization 4 (then crash) 35 2003–2011 Commodities 7 40 2012–2023 Crises/Inflation 1 25–30 2024–2025 Austerity Reforms -4

Data

The following table shows the main economic indicators in 1980–2023, with IMF staff estimates for 2024–2028. NOTE: IMF estimates do not reflect the real figures of 2024 and the years after it, as it is outdated. Inflation below 5% is in green. +Main Economic IndicatorsYearGDP(in bn. US$PPP)GDP per capita(in US$ PPP)GDP(in bn. US$nominal)GDP per capita(in US$ nominal)GDP growth(real)Annual inflation rate(in Percent)Unemployment(in Percent)Government debt(in % of GDP)1980172.56,172.5233.78,361.2 0.7%n/a3.0%n/a1981 178.0 6,256.5 189.8 6,671.4 -5.7%n/a 5.0%n/a1982 183.0 6,327.2 94.3 3,257.9 -3.1%n/a 4.5%n/a1983 197.3 6,725.1 116.3 3,962.7 3.7%n/a 5.0%n/a1984 208.5 6,988.1 130.5 4,374.8 2.0%n/a 5.0%n/a1985 200.2 6,595.2 98.6 3,248.7 -7.0%n/a 6.3%n/a1986 218.8 7,117.3 118.6 3,857.0 7.1%n/a 6.3%n/a1987 229.9 7,393.6 121.6 3,910.0 2.5%n/a 6.0%n/a1988 233.3 7,413.9 142.4 4,524.5 -2.0%n/a 6.5%n/a1989 225.5 7,077.1 91.4 2,867.3 -7.0%n/a 8.0%n/a1990 230.8 7,094.5 158.0 4,857.8 -1.3%n/a 7.6%n/a1991 263.6 7,996.3 212.0 6,429.5 10.5%n/a 6.5%n/a1992 297.4 8,899.4 255.8 7,653.7 10.3%n/a 7.1%25.0%1993 323.5 9,537.8 264.4 7,796.2 6.3%n/a 11.6% 26.9%1994 349.7 10,178.7 287.8 8,378.7 5.8%n/a 13.3% 28.4%1995 346.8 9,972.8 288.5 8,295.1 -2.8%n/a 18.9% 30.7%1996 372.7 10,589.9 304.3 8,645.5 5.5%n/a 18.8% 32.6%1997 409.9 11,512.5 327.4 9,196.5 8.1%n/a 16.8% 31.7%1998 430.5 11,955.7 334.2 9,283.2 3.9% 0.9% 14.8% 34.1%1999 421.8 11,587.1 317.0 8,709.1 -3.4% -1.2% 16.1% 38.9%2000 427.9 11,633.0 317.8 8,638.5 -0.8% -0.9% 17.1% 40.8%2001 418.3 11,256.7 300.4 8,085.4 -4.4% -1.1% 19.2% 48.0%2002 378.5 10,089.1 112.5 2,997.6 -10.9% 25.9% 22.5% 147.2%2003 420.5 11,104.7 142.4 3,761.1 9.0% 13.4% 17.3% 125.2%2004 470.3 12,303.2 164.9 4,314.1 8.9% 4.4% 13.6% 117.9%2005 528.0 13,681.2 199.3 5,163.6 8.9% 9.6% 11.6% 80.3%2006 588.1 15,090.3 232.9 5,976.1 8.0% 10.9% 10.2% 70.8%2007 658.4 16,728.5 287.9 7,315.7 9.0% 8.8% 8.5% 62.1%2008 698.2 17,567.3 363.5 9,146.8 4.1% 8.6% 7.9% 53.8%2009 661.1 16,472.3 334.6 8,337.8 -5.9% 6.3% 8.7% 55.4%2010 736.8 18,063.9 424.7 10,413.0 10.1% 10.5% 7.8% 43.5%2011 797.3 19,322.2 527.6 12,787.8 6.0% 9.8% 7.2% 38.9%2012 819.7 19,641.4 579.7 13,889.8 -1.0% 10.0% 7.2% 40.4%2013 849.6 20,131.7 611.5 14,488.8 2.4% 10.6% 7.1% 43.5%2014 839.9 19,683.8 563.6 13,208.8 -2.5%n/a 7.3% 44.7%2015 867.2 20,105.2 642.5 14,895.3 2.7%n/a 6.5% 52.6%2016 885.2 20,307.9 556.8 12,772.9 -2.1%n/a 8.5% 53.1%2017 1,039.3 23,597.1 643.9 14,618.3 2.8% 25.7% 8.4% 57.0%2018 1,036.3 23,290.6 524.4 11,786.4 -2.6% 34.3% 9.2% 85.2%2019 1,033.7 23,007.8 451.8 10,054.0 -2.0% 53.5% 9.8% 88.8%2020 942.2 20,792.5 389.1 8,571.9 -9.9% 42.0% 11.6% 102.8%2021 1,083.4 23,817.0 486.7 10,631.7 10.7% 48.4% 8.7% 80.8%2022 1,226.2 26,483.6 630.6 13,619.9 5.0% 72.4% 6.8% 84.7%2023 1,239.5 26,506.1 621.8 13,297.4 -2.5% 121.7% 7.4% 89.5%2024 1,302.5 27,576.3 632.6 13,394.3 2.8% 93.7% 7.2% 79.9%2025 1,371.9 28,758.8 635.9 13,330.5 3.3% 54.1% 7.2% 76.8%2026 1,440.5 29,897.4 660.3 13,704.4 3.0% 42.1% 7.0% 75.6%2027 1,507.2 30,971.6 695.3 14,288.0 2.8% 37.1% 7.0% 73.3%2028 1,573.4 32,014.0 728.1 14,813.3 2.5% 32.5% 7.0% 69.5%

GDP growth during 2025 was 4.4%. The nominal monthly median per capita income was 450,000 Argentine peso in Q4 2025.

Sectors

Agriculture

Argentina ranks among major global agricultural producers. It leads in beef exports, citrus, grapes, honey, maize, sorghum, soybeans, squash, sunflower seeds, wheat, and yerba mate.FAO The sector contributed 9% of GDP in 2010. It generated one fifth of exports, excluding processed food and feed, which amounted to another third. Farmers harvested 103 million tons that year. Oilseeds, mainly soy and sunflower, exceeded 54 million tons. Cereals, mainly maize, wheat, and sorghum, surpassed 46 million tons. In recent years, maize output has increased significantly; between 2000 and 2023, production rose by a factor of 3.74, while the planting area expanded by 3.18 times. During this period, the average yield per unit increased by approximately 26%. The country led world production of yerba mate. It ranked among the top five for soy, maize, sunflower seed, lemon, and pear. It placed in the top ten for barley, grape, artichoke, tobacco, and cotton. It stood among the top 15 for wheat, sugarcane, sorghum, and grapefruit. Sunflower seed production made Argentina one of the largest globally, with 2.2 million tons in 2010. That year, output included 2.3 million tons of potato, almost 2 million tons of lemon, 1.3 million tons of rice, 1 million tons of orange, 921 thousand tons of peanut, 813 thousand tons of cotton, 707 thousand tons of onion, 656 thousand tons of tomato, 565 thousand tons of pear, 510 thousand tons of apple, 491 thousand tons of oats, 473 thousand tons of beans, 431 thousand tons of tangerine, 302 thousand tons of yerba mate, 283 thousand tons of carrot, 226 thousand tons of peach, 194 thousand tons of cassava, 174 thousand tons of olives, 174 thousand tons of banana, 148 thousand tons of garlic, 114 thousand tons of grapefruit, and 110 thousand tons of artichoke, plus smaller crops.

Livestock