Argentina is second-largest country in South America (after
Brazil), the total area is 2,766,890 sq km.
Population is 39,537,943 (July 2005 est.),
the main ethnic groups are white (mostly Spanish and Italian) 97%, mestizo (mixed white
and Amerindian ancestry), Amerindian, or other non-white groups 3%
Religion: nominally Roman Catholic 92%
(less than 20% practicing), Protestant 2%, Jewish 2%, other 4%
Languages: Spanish (official), English,
Italian, German, French
Cerro Aconcagua is South America's tallest
mountain, while Laguna del Carbon is the lowest point in the Western Hemispher.
Argentina
benefits from rich natural resources, a highly literate population, an export-oriented
agricultural sector, and a diversified industrial base. Over the past decade, however, the
country has suffered problems of inflation, external debt, capital flight, and budget
deficits. Growth in 2000 was a negative 0.8%, as both domestic and foreign investors
remained skeptical of the government's ability to pay debts and maintain the peso's fixed
exchange rate with the US dollar. The economic situation worsened in 2001 with the
widening of spreads on Argentine bonds, massive withdrawals from the banks, and a further
decline in consumer and investor confidence. Government efforts to achieve a "zero
deficit," to stabilize the banking system, and to restore economic growth proved
inadequate in the face of the mounting economic problems. The peso's peg to the dollar was
abandoned in January 2002, and the peso was floated in February; the exchange rate plunged
and real GDP fell by 10.9% in 2002, but by mid-year the economy had stabilized, albeit at
a lower level. GDP expanded by more than 8% in 2003 and again in 2004, with unemployment
falling and inflation remaining in single digits.
