Argentina Economy Context

Amado Boudou - Economy Minister since 2009-07-08.

With this stability, interference and turnover in the government have fallen, and private investment has grown. The privatization of state enterprises has attracted outside investment while resulting in more efficient operations. Construction and industrial production are among the strongest sectors, and a new focus on high-value-added products for export markets is a particularly welcome trend.

In December 10th, 1999 Mr. De la Rua, the elected president, took office and Luis Machinea took office as economy minister anounced the he would continue with the same economic program (Convertivility Plan) trying to guarantee stability and improvements in the Argentine Economy but after some months he resigned and former Economy Minister Domingo Cavallo took office again.

After 9 monthe in office Mr. Domingo Cavallo had to resign as he did not succeed try to resolve the economy and social crisis of the country.

The Minister of economy Remes Lenicov started his work in January 2002 with a totally different scenario for the country´s economy as ending the convertibility plan, entering in default and a big social crisis.

Mr. Roberto Lavagna took office as the Argentinean economy minister during Mr. Duhalde presidential period. He was requested to continue after Mr. Kirschner won the presidential elections in 2003. Their main task was to renegociate the foreign debt.

GNP in 2000 increased with 0.9%, while Argentina's GNP fell by 11% in 2001. In 2002, Argentina's GNP sunk by 10.9% with respect to the previous year. Soon, however, the country managed to return to growth, with surprising strength: 8.9% in 2003, 9.0% in 2004, 9.2% in 2005, and then again 8.5% in 2006. This was initially due to a surge in exports (over all previous historical records), and then also to the return of local and international confidence, which boosted local consumption and both local and foreign investment.