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Argentina
 

In 1816, the United Provinces of the Rio Plata declared their independence from Spain. After Bolivia, Paraguay, and Uruguay went their separate ways, the area that remained became Argentina. The country's population and culture were heavily shaped by immigrants from throughout Europe, with Italy and Spain providing the largest percentage of newcomers from 1860 to 1930. Up until about the mid-20th century, much of Argentina's history was dominated by periods of internal political conflict between Federalists and Unitarians and between civilian and military factions.

After World War II, an era of Peronist populism and direct and indirect military interference in subsequent governments was followed by a military junta that took power in 1976. Democracy returned in 1983 after a failed bid to seize the Falkland Islands (Islas Malvinas) by force, and has persisted despite numerous challenges, the most formidable of which was a severe economic crisis in 2001-02 that led to violent public protests and the successive resignations of several presidents. The years 2003-15 saw Peronist rule by Nestor and Cristina FERNANDEZ de KIRCHNER, whose policies isolated Argentina and caused economic stagnation. With the election of Mauricio MACRI in November 2015, Argentina began a period of reform and international reintegration.

Source: The CIA World Factbook - Argentina



Your advisors at the Chamber of Commerce

Alissa Dörr

+352 42 39 39 319

Contact us: latinamerica@cc.lu

Key indicators

Area
2,780,400 km2
Population
45,864,941 (July 2021 est.)
Government type
presidential republic
Languages
Spanish (official), Italian, English, German, French, indigenous (Mapudungun, Quechua)
GDP
$383.067 billion (2020 est.)
Growth rate
-9.9% (2020 est.)
HDI
46
Capital
Buenos Aires

Macroeconomic indicators

In order to deal with these problems, the government expanded state intervention in the economy: it nationalized the oil company YPF from Spain's Repsol, expanded measures to restrict imports, and further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. Between 2011 and 2013, Central Bank foreign reserves dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.

With the election of President Mauricio MACRI in November 2015, Argentina began a historic political and economic transformation, as his administration took steps to liberalize the Argentine economy, lifting capital controls, floating the peso, removing export controls on some commodities, cutting some energy subsidies, and reforming the country’s official statistics. Argentina negotiated debt payments with holdout bond creditors and returned to international capital markets in April 2016.

In September 2016, Argentina completed its first IMF Article IV Consultation since 2006.After contracting by more than 2.0% in 2016, Argentina’s economy emerged from recession in 2017 with GDP growth of nearly 3.0%. Argentina passed important pension, tax, and fiscal reforms in 2017. After years of international isolation, Argentina took on several international leadership roles in 2017, including hosting the World Economic Forum on Latin America and the World Trade Organization Ministerial Conference, and is set to assume the presidency of the G-20 in 2018.

Source: The CIA World Factbook - Economic overview

 

IMF Statistics:

Subject descriptor 2021 2022 2023 2024 2025

Gross domestic product, constant prices

Percent change

(Units)

10.718

4.956

-1.569

-2.764

5.003

Gross domestic product, current prices

Percent change

(Billions)

487.377

630.662

654.892

604.260

558.957

Gross domestic product per capita, current prices

Percent change

(Units)

10,639.378

13,640.410

14,024.239

12,811.840

11,733.980

Inflation, average consumer prices

Percent change

(Units)

48.409

72.431

133.489

249.793

59.597

Volume of imports of goods and services

Percent change

(Units)

29.637

12.839

6.148

-15.151

6.732

Volume of exports of goods and services

Percent change

(Units)

12.639

-5.290

-12.890

27.109

5.725

Unemployment rate

Percent change

(Units)

8.750

6.825

6.575

8.000

7.500

Current account balance

Percent change

(Billions)

6.645

-4.289

-22.700

5.497

5.012

Current account balance

Percent change

(Units)

1.363

-0.680

-3.466

0.910

0.897
Estimates

Source: IMF Statistics

Relationships with Luxembourg

Existing conventions and agreements

Non double taxation agreement 

In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.

Treaty signed on 13.04.2019

Air Services agreement

None

Further information

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

Contact point in Argentina

Luxembourg is represented by Royal Netherlands Embassy in Buenos Aires

Competent post for consular affairs Embassy of the Kingdom of Belgium in Buenos Aires

Source: Ministry of Foreign Affairs of Luxembourg

Country risk as defined by Office du Ducroire for Argentina

Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.

Link: Ducroire Office - Country Risk for Argentina

Other useful links

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