History
Argentina’s economy developed from 1875 onwards with a surge of agricultural exports, as well European investment and immigration. This boom ended in 1930, after which the economy began to slowly lose ground. Domestic instability and global trends, however, contributed to Argentina’s decline from its noteworthy position as the world’s 10th wealthiest nation per capita in 1913 to 62nd by 2010 (though it remains above the world average in purchasing power parity terms). Though no consensus exists explaining this, systemic problems include burdensome debt, monetary uncertainty, excessive regulation, barriers to free trade, and a weak rule of law with corruption and a large bureaucracy.
Even during the long decline from 1930 to 1980 the Argentine economy created Latin America’s largest middle class as a proportion of the population. A crisis period of two decades followed José Alfredo Martínez de Hoz’s financial liberalization policies of the late 1970s, leading to an increased debt burden and interrupted industrial development and upward social mobility. Expansionary policies and commodity exports triggered a rebound in GDP beginning in 2003. This trend has been largely maintained, creating millions of jobs and encouraging internal consumption. The socio-economic situation improved steadily, and the economy grew around 9% annually for five consecutive years until 2007, with another 7% in 2008.
The global recession of 2007–10 hit the country hard in 2009 with GDP growth slowing to 0.8%. Argentine debt restructuring offers in 2005 and 2010 resumed payments on the majority of its almost $100 billion in defaulted bonds from 2001. The economic minister Amado Boudou said that with the offer, the Argentine government hoped “to end the shame of 2001 once and for all.” High GDP growth resumed in 2010, and the economy expanded by 8.5%.
Source: Wikipedia