Main Sectors of Industry

Despite recent economic struggles, Argentina continues to play an important role within the global economy, especially with regards to its agricultural production. The sector is mainly based on livestock farming, cereal cultivation (wheat, corn and transgenic soy), citrus fruits, tobacco, tea and grapes (mostly for the production of wine). Argentina is the world’s largest exporter of soy-derived products and the world’s third largest producer of such products. Soy and sugar cane are extensively cultivated for bio-fuel production. As a result, the country is the world’s largest exporter and sixth largest producer of bio-diesel. The agricultural sector represents 7.1% of the country’s GDP, but it only employs 0.1% of the population, according to the World Bank. Additionally, given that the country is rich in energy resources, Argentina also has a great potential in terms of raw materials: it is the fourth largest natural gas producer in Latin America, and they have the world's third largest shale gas reserve and the fourth largest lithium reserve. Agricultural exports are a key source of revenue for Argentina, especially as the country leaves a recession that has been exacerbated by the pandemic. However, in 2022, Argentina experienced the worst drought in decades, which significantly impacted the country's wheat, corn, and soy crops.

The industrial sector has vastly expanded in recent years. According to the latest data from the World Bank, the sector represents 23.6% of GDP and employs 21.8% of the population. Food processing and packaging - in particular meat packing, flour grinding and canning - and flour-milling are the country's main industries. The industrial sector also demonstrates strength in motor vehicles and auto parts, consumer durables, textiles, chemicals and petrochemicals, pharmaceuticals, printing, metallurgy and steel, industrial and farm machinery; electronics and home appliances. Industrial activity in Argentina continued to experience growth in 2022, registering a steady recovery from the impacts of the pandemic.

The service sector is the largest contributor to GDP, accounting for 52.5%, and it employs 78.1% of the active workforce. Argentina has specialised in areas of high-tech services and is highly competitive in software development, call centres, nuclear energy and tourism. The telephone and ITC sectors are also developing dynamically, as well as tourism, which is increasingly becoming an important sector. In 2022, tourism experienced a significant growth as the depreciation of the Peso made the country an attractive destination for foreign visitors. As a result, the number of tourists in Argentina bounced back to pre-pandemic levels in 2022.

Source: World Bank - Latest available data.

Political Outline

Current Political Leaders

President: Alberto Fernández (since 10 December 2019); the president is both chief of state and head of government.

Next Election Dates

President: October 2023
Legislative (Senate and Chamber of Deputies): October 2023

Current Political Context

President Alberto Fernández, who took office in December 2019, was elected on pledges to resurrect the Argentinian economy after a long period of economic downturns. However, the negative economic and social impacts of the pandemic and the setbacks in the reopening process resulted in a significant fall in popularity. In 2021, the moderate stance of the government gave way to the hardliner and interventionist orientation linked to Vice-President Cristina Kirchner. As a result, at the legislative elections, which took place in November 2021, Argentina's ruling Peronist party saw its centre-left coalition lose its majority in Congress for the first time in almost 40 years.In March 2022, the Congress approved a USD 45 billion debt agreement with IMF. However, as the IMF is not a popular institution among Argentines, the deal can further decrease the president's popularity. Nevertheless, the deal will provide investors with legal and macroeconomic certainty, which is a big step in returning to meaningful growth and a significant part of the president's strategy to attract new investment while dealing with Argentina’s debt problem and addressing other issues such as inflation, poverty, and unemployment. Furthermore, a rift between Fernandez and Kirchner has added to the country's instability, as the Vice President forced out the country's first finance minister, Martin Guzman, in July 2022, for trying to implement an agreement with the IMF that required a considerable reduction of the deficit and stricter control of the money supply by the central bank. After his departure, Sergio Massa became minister of the economy, production and agriculture, with his main focus being controlling the country's rising inflation by reducing public spending and boosting foreign reserves. As the country approaches general elections in 2023, politics and economics have been getting even more intertwined, as Argentina's economic situation is likely to impact the ballots.

Main Political Parties

- Everyone's Front (Frente de Todos): coalition which aims to create a union of all parties of centre-left and left-wing, peronism, kirchnerism, social democracy, democratic socialism, and progressivism
- Together For Change (JxC): formerly known as Cambiemos. Centre-left to centre-right, big-tent coalition, liberalism, conservatism, social democracy, federal peronism, and Christian democracy
- Federal Consensus (Consenso Federal): centre political coalition, federal peronism, and progressivism
- Workers' Left Front (FIT): far-left alliance, ideologically identifies with Trotskyism
- Advance Freedom (Avanza Libertad): centre-right coalition, economic liberalism, social conservatism
- We (NOS): right-wing coalition, Catholic nationalism, conservatism, right-wing populism

Executive Power

Executive power is held by the President of the Argentine nation and is his/her responsibility to respond to national interests. The President is the Head of the Government and the Chief of State, the individual responsible for the general administration of the country and Commander-in-Chief of the Armed Forces. The President is elected by universal suffrage for a four-year term and can be re-elected for a subsequent consecutive term of office. The Vice President is elected alongside the President. The President appoints individuals to the Council of Ministers.

Argentina has 23 provinces and one autonomous federal district - each retains some powers that do not belong to the federal government and elects their own legislators and provincial governors.

Legislative Power

The legislative power is held by the bicameral National Congress (Congreso Nacional). The Chamber of Deputies (the lower house) is comprised of 257 members, which are elected to four-year terms by direct universal suffrage, with half of the membership renewed every two years. The Senate (upper house) is comprised of 72 members, which are elected to six-year terms by direct universal suffrage - with one third of the members elected every two years.