ARGENTINA'S ECONOMIC ACTIVITIES (BY SECTORS) - ECONOMY - 2024

The economic activities of Argentina refer to the various tasks on which the economy of this country is based. They play a very important role in the world economy, especially with regard to their agricultural production, despite the various economic difficulties they have had to face.

In 2017, its nominal gross domestic product (GDP) was $ 637 billion and its GDP per capita was $ 20.8 thousand. In 2018 GDP per capita was $ 11,658. In 2019, GDP fell by 3.1% and by 2020 another decrease of 1.3% is expected.

Vineyards of Cafayates Argentina. Source: pixabay.com

Argentina has a mixed economy, being the third largest economy in Latin America, after Brazil and Mexico. On the other hand, it is the 44th largest export economy in the world. In 2017 it exported $ 59.2 billion and imported $ 66.5 billion, which generated a negative trade balance of $ 7.25 billion.

The largest contributor to GDP is the business and social sectors, which represent 33.3%. This is followed by manufacturing with 21.8% of GDP and commerce and tourism with 16.9%.

List of main economic activities

Buenos Aires, Argentina

- Agricultural and livestock sector

It represents 5.5% of the country's GDP, although it only employs 0.6% of the population. This sector is mainly based on livestock, in addition to the cultivation of different cereals, citrus fruits, tobacco, tea and grapes mainly for the production of wine.

farming

The advances observed in agricultural products, such as wheat, corn, transgenic soybeans and barley, have caused the export of these cereals to boost the food industry.

Argentina is the world's largest exporter of soy products and the world's third largest producer of such products. Soybeans and sugar cane are widely cultivated for biofuel production.

As a result, the country is the world's largest exporter and the fourth largest producer of biodiesel.

Cattle raising

Although it no longer participates in such a high proportion of GDP as it did in the 19th century and until approximately the middle of the 20th century, livestock continues to be an important part of the economy, accounting for about 10% of exports.

Argentine meat continues to be recognized for its high quality around the world, but every year it is decided to further expand the area for soybean cultivation, sacrificing the large pastures needed for raising livestock.

- Industrial sector

Demonstrates strength in motor vehicles and auto parts, consumer durables, textiles, chemicals and petrochemicals, pharmaceuticals, printing, metallurgy and steel, industrial and agricultural machinery, electronics and appliances.

This sector has expanded enormously in recent years, employing almost a quarter of the population.

Food and beverage processing industry

This has always been one of the oldest and most important industries in the country. Thanks to its rich fertile lands, Argentina has vast agricultural resources that are used in the industrial sector of the country.

After starting with the processing and packaging of meat destined for export, this industry has now taken a risk with various foods that have markets worldwide, in particular the milling and packaging of soybean meal.

The companies that correspond to this industry are found primarily in Buenos Aires, being the main industries in the country.

Extraction and energy industry

Mining and other extractive activities, such as gas and oil, are growing industries, increasing from 2% of GDP in 1980 to around 4% today. The oil industry has always received government support.

Argentina is rich in energy resources, with great potential in raw materials, being the fourth largest producer of natural gas in Latin America. In addition, it has the world's third largest reserve of shale gas and the fourth largest reserve of lithium.

The export of petroleum derivatives began in the 1990s with a record low of 800,000 barrels, but with the discovery of oil reserves located in Río Negro Norte, it has grown steadily.

The metals and minerals extracted include borate, copper, lead, magnesium, sulfur, tungsten, uranium, zinc, silver, titanium and gold, the production of which increased after 1997.

Exports of these minerals and metals rushed from just $ 200 million in 1997 to more than $ 3 billion in 2011.

Electronics and household appliances industry

Argentina is among the few countries with a high level in the manufacture of electronic products and household appliances.

This innovative industry continues to evolve and modernize to meet the growing demand from both the global and local markets.

Favorable government policies have allowed this industry to post a positive market outlook, which has been helped by Internet retailing to easily reach a global customer base.

Textile industry

With a revealing growth of 74% in 2002, it is thus established that this industry is among the largest in Argentina. The favorable economic conditions increased the general purchasing power of the people.

It is estimated to have a total value of $ 12 billion. The Argentine textile industry has stimulated the area of ​​clothing, generating that world icons of fashion design are buyers of its materials for high-quality clothing.

The textile industry has a production value of $ 2.5 billion annually, with more than 11,000 textile manufacturing companies owned by local families.

- Service sector

This sector has followed the same upward trajectory as the industrial sector. It is the largest contributor to total GDP, representing more than 60%. In addition, it employs three-quarters of the active workforce.

This country enjoys a fairly diversified service sector, including well-developed social, corporate, financial, insurance, real estate, transportation, communication and tourism services.

It has focused on the areas of high technology services. It is highly competitive in software development, customer service centers, and nuclear power as well. Furthermore, the telephony sectors are being actively developed.

Banking

It developed around the public sector banks, but is now dominated by the private sector. Deposits in banking exceeded $ 120 billion in 2012.

Private sector banks represent the majority of the 80 active institutions, with more than 4,000 branches, holding almost 60% of deposits and loans, and both foreign-owned and local banks operate in the country.

tourism

It is becoming more and more an important area of ​​this sector. Foreign tourism contributed $ 5.3 billion, thus becoming the third largest source of foreign exchange in 2004.

Around 5.7 million foreign visitors arrived in 2012, reflecting a doubling of visitors since 2004, despite a relative appreciation of the peso.

The World Economic Forum estimated that in 2012 tourism generated around $ 17 billion in direct economic turnover and another $ 30 billion in indirect turnover. This industry is directly employing 650,000 people and 1.1 million more indirectly.

References

1. Amber Pariona (2017). The Economy Of Argentina. World Atlas. Taken from: worldatlas.com.
2. Joseph Kiprop (2018). What Are The Biggest Industries In Argentina? World Atlas. Taken from: worldatlas.com.
3. Societe Generale (2019). Argentinian Market: Main Sectors. Taken from: import-export.societegenerale.fr.
4. Global Tenders (2019). Economy and Business Opportunities from Argentina. Taken from: globaltenders.com.
5. Wikipedia, the free encyclopedia (2019). Economy of Argentina. Taken from: en.wikipedia.org.