"The positive economic development of the country and the feasibility of it were further delineated by the fact that Argentina has coped with the global economic crisis relatively well."

Argentina has a fundamentally market economy.  The national economy is very different from that of only a few years ago when the country underwent the worst economic crisis of its history in 2001. The crisis created an extremely insecure socio-economic environment, which peaked during December 2001 and provoked serious civil unrest and a severe economic downturn which had as a result high budget deficits, significant levels of debt and increasing inflation. Following the economic recession the Argentinean government forced to end the one-to-one parity between the Argentinean peso and the dollar, something that had devastating results in the economy of the country.  Since then Argentina implemented a succession of internationally administered restructuring programs and resolved the its economic difficulties.

  The economic crisis left more than half the population living in poverty and triggered unrest. Furthermore the country struggled with record debt defaults and currency devaluation. Nevertheless, due to the aid of several international monetary organizations, such as the International Monetary Fund (IMF) the crisis was quickly tackled. By 2003 a recovery was already under way. An agreement on the repayment of the country’s debt to the IMF was settled in January 2003. Later on in September and only one month after the previous agreement expired, Argentina failed to repay its debts to the organization. In spite of that the IMF extended a new, three-year deal to the Argentinean Government, and in March 2004 agreed to release a new loan.    

Additionally, the national economy experienced a robust recovery. For five consecutive years the real growth in gross domestic product (GDP) was over eight (8) per cent. The main reason behind this recovery was the fact that Argentinean administration took advantage of the ideal national and international economical momentum. The country benefited by the reactivation of previously idled industrial capacity and labor, strong domestic demand and by the excellent international financial conditions that boosted Argentinean exports.  Of course, the economy was also benefited by the considerable decrease of the public debt.      

The positive economic development of the country and the feasibility of it were further delineated by the fact that Argentina has coped with the global economic crisis relatively well.

Another positive indication for the future positive socio-economic development of Argentina is the fact that on the international front Argentina enjoys good relations with most of the countries in the region -particularly Brazil and Venezuela- and with two of the most prominent international economical actors, the U.S.A and European Union. Additionally, the country is a member of the Latin American Integration Association (ALADI) and of Mercosur (Mercado Comun del Sur). In December 2004 Argentina was one of 12 countries that were signatories to the agreement, signed in Cusco, Peru, creating the South American Community of Nations (Comunidad Sudamericana de Naciones), which was renamed the Union of South American Nations, UNASUR, (Union de Naciones Suramericanas), in April 2007.