According to Trading Economics global macro models and analysts, Argentina’s GDP per capita is anticipated to reach 12500.00 USD by the end of 2021. According to our econometric models, Argentina’s GDP per capita is expected to trend at 12600.00 USD in 2022 and 12800.00 USD in 2023.
When was Argentina the wealthiest country on the planet?
Argentina was one of the wealthiest countries in the earth at the turn of the twentieth century. It was wealthier than France or Germany in 1913, nearly twice as prosperous as Spain, and its per capita GDP was nearly as high as Canada’s.
What is the formula for calculating GDP per capita?
How Is GDP Per Capita Calculated? GDP per capita is calculated by dividing a country’s gross domestic product (GDP) by its population. This figure represents a country’s standard of living.
Is Argentina a wealthy nation?
Argentina is one of Latin America’s largest economies, with a Gross Domestic Product (GDP) of around US$450 billion.
Argentina has abundant energy and agricultural resources. Argentina’s 2.8 million square kilometers of land are blessed with extraordinarily fertile farmland, gas and lithium reserves, and renewable energy possibilities. With large-scale agricultural and cattle businesses, it is a prominent food producer. Argentina also has tremendous prospects in various manufacturing subsectors as well as innovative high-tech services.
However, the country’s development has been hampered by the country’s past economic volatility. In the first semester of 2021, urban poverty in Argentina reached 40.6% of the population, with 10.7% of the population living in extreme poverty. Poverty in infancy affects 54.3% of children under the age of 14.
To address this problem, the country has prioritized social spending through a variety of initiatives, including the Universal Child Allowance, a cash transfer program that serves about 4 million children and adolescents up to the age of 18, accounting for 9.3% of the population.
COVID-19 has had a huge impact in Argentina. The country’s GDP fell 9.9 percentage points in 2020, the worst drop since 2002.
Despite the fact that the economy has begun to recover, it is still 3.3 percent below pre-pandemic levels in mid-2021, owing in part to a fresh wave of COVID in the second quarter of 2021. In 2021, the primary fiscal deficit is expected to decrease due to the end of emergency programs implemented to combat the pandemic’s effects on one hand, and extraordinary resources from an increase in international commodity prices and an exception tax on large fortunes on the other, on the one hand. However, macroeconomic imbalances persist in the domestic economy. In August, annual inflation, which had slowed in the face of a drop in economic activity in 2020, was 51.4 percent.
In terms of its external debt, the government has completed the process of restructuring all of its debt (both domestic and foreign) in foreign currency, greatly improving the maturity profile over the next eight years. In addition, authorities are discussing a new initiative with the International Monetary Fund.
What is Argentina’s poverty rate?
With his wife’s wages of 14,000 pesos and a state subsidy of 13,000 pesos, the monthly family income is usually around 39,000 pesos ($195), significantly below the 67,000 pesos that a family of four in Argentina is considered poor.
The government announced on Thursday that the poverty rate in the country of 45 million people fell to 40.6 percent in the first half of 2021, down from 42 percent previously, in a country rich in natural resources such as cattle and corn, as well as natural gas, but plagued by inflation, economic mismanagement, and years of cyclical debt crises.
“We can only eat so much at a time. We don’t splurge on frills, but thank God we don’t go hungry “Maria Eugenia Gonzalez de Rodriguez, 39, a municipal cooperative worker who cleans storm drains in the neighborhood, agreed.
Rodriguez spends his free time teaching soccer to children and teenagers from low-income families so that they might aspire to the professional career that he previously wished for as a way out of poverty.
“I enjoy spending time with the lads and come to do it without any obligation or pay. I do it because I’m passionate about it, and it’s what keeps me going every day “he stated
Argentina has what kind of economy?
Argentina is a South American country that borders the Southern Atlantic Ocean. Bolivia, Brazil, Chile, Paraguay, and Uruguay are all close neighbors. Argentina’s continental territory is bounded on the west by the Andes mountain range and on the east by the Atlantic Ocean. Climates range from tropical in the north to tundra in the south due to diverse geographical settings. The president is the chief of state and the head of government in the republican government system. Argentina has a mixed economic system, with a mixture of private liberty and centralized economic planning and government regulation. Argentina is a member of the Southern Common Market (Mercosur).
Is Argentina a wealthier country than India?
Make 2.9 times the amount of money. In 2017, India had a GDP per capita of $7,200, whereas Argentina had a GDP per capita of $20,900.
Is it a decent place to reside in Argentina?
Argentina is a popular retirement destination for many individuals. There are some substantial advantages for retirees considering moving to Argentina.
Low-cost, high-quality healthcare is at the top of the list for retirees in Argentina. Knowing you’ll be able to afford great care allows you to savor your golden years even more.
Retirees will appreciate the lifestyle and low cost of living. Argentina is an ideal retirement destination because of its thriving expat community and wide selection of recreational and cultural activities. Golf, dining at elegant restaurants, and lengthy beach walks are all within easy reach.
When you retire in Argentina, getting aid, whether it’s domestic help, a driver, or a nurse when you need it, is also affordable. As a result, you’ll have more time to accomplish the activities you enjoy.
There are also direct flights from Argentina to the United States and throughout South America. New York, Washington, DC, Miami, Houston, and Atlanta are among the major US travel centers covered by these routes. Many Central American, Asian, and European capitals are also accessible via direct flight.
Is Chile a wealthier country than Argentina?
Another instructive example is Germany’s post-World War II experience. The standard of living in communist East Germany was only one-fifth that of capitalist West Germany when the Berlin Wall fell, barely two generations after the war ended.
The similar approach may be used to figure out why Chile is doing well while Argentina is struggling.
First, there are parallels. Both countries have a north-south axis and are known for their varied geography, extensive shorelines, and plenty of agriculture, livestock, and vineyards. Both countries gained their freedom from Spain over two centuries ago. Both have a majority of European ancestors in their populations. Military rule has a long history in both countries. Both have recently witnessed political upheaval, including large-scale and often violent public demonstrations.
Furthermore, Chile and Argentina are democracies governed by the right and left, respectively. A president can serve more than one term in Chile, but not consecutively. As a result, Sebastin Piera, a centrist who leads a center-right coalition, will not be able to fight for re-election in 2017, while he may run in 2018.
While Chile’s ruling coalition, led by Finance Minister Felipe Larran, has done much to improve the country’s macroeconomic performance, it has also struggled to find a strong presidential candidate; a scandal followed an intense internal succession battle, forcing the centre-right coalition to run its third-choice candidate. Michelle Bachelet of the Socialist Party (Piera’s predecessor) won the first round convincingly and is poised to be elected next year as the leader of the centre-left alliance.
Meanwhile, Argentine President Cristina Fernndez de Kirchner, who took over from her late husband, Nstor Kirchner, in 2007, is legally barred from seeking re-election to a third straight term. Her failure to obtain the required two-thirds legislative majority to modify the constitution, along with opposition candidates’ victories in recent midterm elections, suggests that Argentina may be on the verge of a rightward shift in 2015.
Now for the distinctions. The economic policies of the two countries differ significantly. Chile has generally pursued economically sound policies, albeit occasionally in novel ways. Copper revenue, for example, which accounts for 13% of the budget, must be spent based on a long-term, independently verified planning price, with surplus money being saved in a fund to be used should copper prices fall.
In addition, Chile’s central bank has kept inflation low it is now at 2% and the budget is nearly balanced. Individual responsibility and private saving are emphasized in the country’s pension system. Trade with the United States has increased as a result of a bilateral free-trade deal. Chile has also actively participated in the Trans-Pacific Partnership (TPP) trade negotiations.
To be sure, Bachelet’s proposals for more corporate taxes, increased welfare spending, expanded government control over pensions, and a re-examination of Chile’s TPP membership threaten to undo much of this success. However, if she returns to the more centrist policies of her last term once in power, Chile’s economic momentum may be maintained.
Argentina, on the other hand, is through a series of self-inflicted economic crises. Argentina has immense economic potential, with a population twice that of Chile, recently discovered energy deposits, and a lively capital city. It was, after all, one of the world’s wealthiest countries a century ago, with a quality of living comparable to that of the United States. Argentina’s per capita income, on the other hand, is just 40% of America’s and significantly lower than Chile’s.
The difference between the official exchange rate and the black-market rate, dubbed “Dlar Blue,” has already reached 60%. Almost every retailer in Buenos Aires quotes a dollar and a peso pricing, which is unsurprising. This is partially due to significant inflation, which independent analysts estimate to be above 25% – more than double the official estimate of 10%. Argentina’s official inflation rates have been noticeably lower than alternative estimates since Kirchner changed the senior inflation statistician at the National Statistics Institute in 2007. (Inflation figures in Chile have also been criticized, but to a lesser extent than in Argentina, and Chile’s state statistics institute is significantly more independent of the government than Argentina’s.)
Fernndez’s government bullies and nationalizes businesses, and the central bank is pressured to pay debts with international reserves. Mercosur, Argentina’s largest trade pact, has fallen far short of its potential. Argentina is expected to have slower growth, higher inflation, and higher unemployment than Chile over the next five years, according to the International Monetary Fund.
Fortunately, voters are increasingly rejecting Fernndez’s administration. With their business-friendly, anti-inflation campaigns, opposition candidates Sergio Massa and Mauricio Macri drew strong electoral support in August, making them possible presidential candidates in 2015. Even if Fernndez does not cause too much damage in the meanwhile, her successor will have to restore Argentina’s credibility both at home and internationally to prevent capital flight.
Is it possible for an Argentine president to promote disinflation while maintaining public support at a period of slower or even recessionary growth? It happened in the United States. Despite a harsh recession, a temporary surge in unemployment, and midterm election defeats, President Ronald Reagan supported US Federal Reserve Chairman Paul Volcker’s disinflation. Reagan was re-elected after the economy recovered. Price stability allowed for a quarter-century of high growth and low unemployment, interrupted only by two brief, mild recessions, resulting in the best macroeconomic performance in American history.
One can only hope that Argentina will learn from its western neighbor and that a Bachelet administration in Chile will look across the Andes, understand where its policies are likely to lead the country, and alter direction before it is too late.