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Blessed with abundant natural capital and a well-educated workforce, Argentina holds immense potential to achieve sustained and inclusive economic growth. The country boasts vast and diverse natural resources, including the world's second-largest lithium deposits, the second-largest gas reserves, and the fourth-largest petroleum reserves. Argentina’s is a major agricultural producer, ranking third in global soybean production.
Despite its promising potential, Argentina has struggled to achieve consistent growth. At the beginning of the 20th century, it stood as the world's seventh-wealthiest nation, fueled by an open economy and progressive immigration policies. However, the country has since experienced a gradual economic decline, transitioning from a high-income to a middle-high-income status. Economic instability has been a primary factor in this downturn, resulting in an average annual GDP growth rate of just 1.8 per cent over the past half-century, well below the Latin American average of 3.2 per cent. Had Argentina grown at the same pace as the rest of the region, its per capita GDP would be 60 per cent higher today.
The report highlights three critical areas for Argentina to overcome these development challenges and embark on a sustainable long-term economic growth path: