1

Argentina, a nation with a rich cultural heritage, has been navigating

through significant reforms aimed at addressing economic challenges,
political instability, and social inequalities.

o Argentina is Latin America's third-largest economy, with a GDP of

slightly over USD 630 billion and GDP per capita income is USD
13,619 in 2022 (IMF, 2024).
o A sharp decline in economic growth from 5.0% in 2022 to -2.5 in
2023 coupled with an alarming increase in inflation from 72.4% to
121.7 % during the same period (Figure 1).
o Argentina's gross public debt rose to 89.5% of GDP in 2023 and is
predominantly owed to domestic creditors, with a split of 64%
domestic and 36% external.
o The fiscal deficit stood at 3.2% of GDP in 2023, with a reduction
foreseen to 2.8% in 2024. Inflation has surpassed 120% in 2023 –
o the highest inflation rate since the 1991 hyperinflation era - and
may continue to rise in the near term due to expectations of a
currency devaluation.
o The unemployment rate remains high at 7.4% in 2023, with an
increase from 6.8% compared to the 2022.
o Poverty is persistently high and extreme poverty has been pushed
up by rising inflation.
o Labor productivity is low due to a lack of domestic and external
competition in many markets.
o High trade barriers deprive the economy from the benefits of
international competition.
o Product market regulation and administrative barriers restrict
market entry and hamper competition (OECD, 2023).
Figure 1: Economic growth and inflation volatility

Source: Author’ formulation based on data are taken from IMF World Economic
Outlook Note: Real GDP growth (Annual percent change). Inflation rate, average
consumer prices (Annual percent change). Values from 2023 onward are projected.

2
 1.0
5.0
7.0
9.0
11.0

-11.0
-9.0
-7.0
-5.0
-3.0
-1.0
3.0
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984

ARG
1986
1988
1990

3
1992
1994
1996
1998
2000

Cyclicality of growth
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
75,000
65,000
55,000
45,000
35,000
25,000
15,000
5,000
1/2/96
1/2/97
1/2/98
1/2/99

1/2/01
1/2/02
1/2/03
1/2/04
1/2/05
1/2/06
1/2/07
1/2/08
1/2/09
1/2/10
1/2/11
1/2/12
1/2/13
1/2/14

1/2/16

1/2/18
1/2/19
1/2/20
1/2/21
1/2/22
1/2/23
1/2/24
1/2/00

1/2/15

1/2/17

4.600
4.500 y = 0.0115x + 3.8916
4.400 R² = 0.9274
4.300
4.200
4.100
4.000 y = 0.0035x + 3.9197
3.900 R² = 0.6771
3.800
3.700

BASELINE ACTUAL Linear (BASELINE) Linear (ACTUAL)

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5
6
3.900
y = 0.0191x + 2.5912
3.700
R² = 0.9891
3.500

3.300

3.100 y = 0.0089x + 2.6715

R² = 0.9784
2.900

2.700

2.500
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022

BASELINE ACTUAL Linear (BASELINE) Linear (ACTUAL)

7
1
PIDE. “Pakistan One Year Growth Strategy”: Pg no. 19
2
Haque and Qasim. “Immediate Reform Agenda: IMF and Beyond”. Page no: 92-113
3
Haque and Qasim. “Immediate Reform Agenda: IMF and Beyond”. Page no: 11
4
Haque, Nayab and Qasim. “PIDE Reform Manifesto: Transforming Economy and Society”. Page no: 20
5
Haque and Qasim. “Immediate Reform Agenda: IMF and Beyond”. Page no: 34-38
6
PIDE. “Pakistan One Year Growth Strategy”: Pg no. 10
Haque, Nayab and Qasim. “PIDE Reform Manifesto: Transforming Economy and Society”. Page no: 35-36

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9
10
11
10.0
9.1
9.0
8.2
8.0 7.3 7.0 7.3 7.1 7.1
6.8 6.7
7.0 6.3
5.9 6.1 5.9
6.0 5.5 5.7 5.7 5.8 5.6
5.3 5.2 5.2 5.1
4.8
5.0 4.3
4.0
4.0 3.5 3.4
3.0
2.0
2004

2015
1996
1997
1998
1999
2000
2001
2002
2003

2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

2016
2017
2018
2019
2020
2021
2022

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 15.0 140.0
10.1 10.7
9.0 8.9 8.9 8.0 9.0 121.7
120.0
10.0
6.0
GDP GROWTH(%)

5.0 100.0

INFLATION (%)
4.1
5.0 2.4 2.7 2.8
80.0
72.4
0.0 60.0
53.5 48.4
-0.8 -1.0 42.0 40.0
-5.0 -2.5 -2.1 -2.0
-2.6 34.3 -2.5
-4.4 25.9 26.5 25.7 20.0
13.4 -5.9
10.9 8.8 8.6 16.0
-10.0 4.4 9.6 6.3 10.5 9.8 10.0 10.6 0.0
-0.9 -1.1 0.0
-10.9 -9.9
-15.0 -20.0

GDP Growth Inflation

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