Main Sectors of Industry

Despite recent economic struggles, Argentina continues to play an important role in the global economy, especially with regard 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 biofuel production. As a result, the country is the world’s sixth-largest producer of biodiesel. The agricultural sector represents 6.6% of the country’s GDP and employs 8% of the population, according to the World Bank. Additionally, given that the country is rich in energy resources, Argentina also has great potential in terms of raw materials: it is the fourth-largest natural gas producer in Latin America, and it has the world's third-largest shale gas reserve and the fourth-largest lithium reserve. Agricultural exports are a key source of revenue for Argentina. Corn and wheat are the most important crops in terms of volume, with a combined production of 1.946 million tons in the 2022/23 season, representing a 65% increase compared to the last two decades.

According to the latest data from the World Bank, the industrial sector represents 24.2% of GDP and employs 20% of the population. Prominent sectors include food processing, automotive manufacturing, petrochemicals, and electronics. Historically, Argentina has been known for its agricultural output, and this remains a significant part of its industrial landscape, with food processing playing a vital role in the economy. Automotive manufacturing has also been a key sector, with several multinational companies operating in the country. In recent years, there has been a growing focus on renewable energy, particularly wind and solar power, as Argentina seeks to diversify its energy sources and reduce reliance on traditional fuels. During the first half of 2023, the industrial sector attained its peak activity level in at least seven years: according to official government figures, industrial output experienced a 1.9% increase compared to the previous year and surged by 12.8% compared to pre-pandemic levels (January-June 2019).

The service sector is the largest contributor to GDP, accounting for 53.1%, and it employs 72% of the active workforce. Key sectors include finance, tourism, telecommunications, healthcare, education, and retail. Finance, particularly banking and insurance, plays a crucial role in Argentina's economy. Telecommunications and technology services have seen rapid growth, with increasing internet penetration and mobile connectivity driving innovation and digital transformation. Healthcare and education sectors continue to expand, and retail and consumer services are also important. Tourism is pivotal and is estimated to account for almost 9% of the country’s GDP (data WTTC).

Source: World Bank - Latest available data.

Political Outline

Current Political Leaders

President: Javier Milei (since 10 December 2023); the president is both chief of state and head of government.

Next Election Dates

President: October 2027
Legislative (Senate and Chamber of Deputies): October 2025

Current Political Context

Argentina conducted general elections on October 22, 2023, to elect the president, vice president, members of the National Congress, and governors of most provinces. The incumbent president Alberto Fernández and former president Cristina Fernández de Kirchner, who was also the incumbent vice president and eligible for re-election to a consecutive term, opted not to seek another term in office. With no presidential candidate securing a majority in the initial round, a runoff occurred on November 19. In the runoff, Javier Milei emerged victorious over Sergio Massa to assume the presidency of Argentina.
New President Javier Milei described himself as an 'anarcho-capitalist' and is expected to pursue libertarian policies. In his first month in office, he unleashed a mega-decree to change or scrap 366 economic rules in a country accustomed to heavy government intervention in the market. Milei has implemented changes to labour laws, extending the trial period for new employees from three to eight months and modifying compensation laws for dismissals without cause in favour of companies. Additionally, he intends to renegotiate labour agreements established since 1975. Furthermore, he has eliminated export restrictions and announced plans to liberalize the internet market. He has also repealed regulations prohibiting the privatization of state-owned enterprises and has expressed interest in privatizing the national airline, Aerolineas Argentinas, and the oil company, YPF. Additionally, he has taken steps to restrict the right to strike, a constitutionally protected right.
According to the International Monetary Fund, Argentina has pledged to build up international reserves and halt central bank financing of government debt as part of the most recent assessment of its USD 44 billion loan program. The global lender has endorsed a series of reforms put forward by President Javier Milei's administration.

Main Political Parties

The main parties/coalitions in Argentina include:

- Freedom Advances (La Libertad Avanza - LLA): far-right political coalition, holding conservative and ultraconservative positions on social and cultural matters, while adopting right-wing libertarian or ultra-liberal stances on economic issues. It is led by Javier Milei, who was elected Presiden in the 2023 Argentine general election
- Union for the Homeland (Unión por la Patria, UP): political and electoral coalition of Peronist political parties, it is the main opposition coalition
- Republican Proposal (Propuesta Republicana - PRO): right-wing, with center-right and far-right factions. Allied of LLA
- Radical Civic Union (Unión Cívica Radical - UCR): centrist, liberal
- Hacemos Coalición Federal (HCF): political/parliamentary alliance that unified the blocs Hacemos por Nuestro País, Coalición Cívica ARI, and Cambio Federal in the Chamber of Deputies
- Federal Peronism (Peronismo Federal): moderate, centrist, or right-wing Peronism, primarily recognized for its opposition to Kirchnerism, the left-wing faction of Peronism.

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 the 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 its 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.