Finance

Argentina: Finance

Currency and Exchange Rates:

Monetary Units:

100 centavos = 1 nuevo peso argentino (new Argentine peso).

Sterling, Dollar and Euro Equivalents (30 May 2008):

£1 sterling = 6.076 new pesos;
US $1 = 3.079 new pesos;
€1 = 4.775 new pesos;
100 new pesos = £16.46= $32.48 = €20.94.

Average Exchange Rate (new pesos per US $):

2005 2.904
2006 3.054
2007 3.096

Note: From April 1996 to December 2001 the official exchange rate was fixed at US $1 = 99.95 centavos. In January 2002 the Government abandoned this exchange rate and devalued the peso: initially there was a fixed official exchange rate of US $1 = 1.40 new pesos for trade and financial transactions, while a free market rate was applicable to other transactions. In February, however, a unified `floating' exchange rate system, with the rate to be determined by market conditions, was introduced.

Budget (million new pesos, forecasts) ^*


Revenue	2006		2007		2008
Current revenue	100,059	.1	119,294	.0	168,322	.1
Tax revenue	77,970	.5	87,198	.2	118,751	.8
Direct	21,282	.5	17,156	.0	21,942	.2
Indirect	56,688	.0	70,042	.2	96,809	.7
Social security contributions	16,979	.2	26,046	.8	40,237	.4
Sale of public goods and services	564	.9	763	.2	909	.3
Property income	1,400	.0	2,029	.2	3,380	.1
Other non-tax revenue	2,253	.2	2,748	.4	3,501	.2
Current transfers	891	.2	508	.2	1,542	.3
Capital revenue	1,102	.8	1,097	.8	1,140	.7
Total	101,161	.9	120,391	.9	169,462	.8


Expenditure^{[REF NOT FOUND]}	2006		2007		2008
Current expenditure	81,253	.0	99,994	.2	142,432	.5
General administration	5,678	.6	5,795	.3	6,834	.6
Legislative	469	.9	552	.0	710	.7
Judicial	1,446	.4	1,940	.7	2,435	.8
Foreign relations	752	.9	900	.6	1,082	.5
Interior	2,009	.6	1,200	.1	1,169	.5
Fiscal	21	.7	40	.6	204	.4
Defence and security	6,540	.0	7,536	.4	9,370	.5
Defence	3,123	.2	3,550	.6	4,250	.6
Internal security	2,607	.4	3,045	.1	3,899	.1
Penal system	392	.7	473	.8	608	.4
Intelligence services	416	.7	466	.9	612	.4
Social services	55,132	.9	66,118	.8	91,860	.3
Health	3,331	.3	4,199	.9	5,930	.2
Social welfare	5,516	.0	2,976	.2	3,718	.7
Social security	35,184	.0	46,323	.0	66,504	.9
Education and culture	6,352	.9	7,903	.5	10,189	.8
Labour	3,461	.1	2,934	.7	2,614	.5
Economy	3,255	.6	6,409	.9	15,158	.1
Energy, fuel and mining	1,185	.3	3,061	.4	7,578	.2
Communications	194	.6	264	.9	374	.6
Transport	791	.1	1,609	.1	4,030	.7
Agriculture	521	.9	714	.0	1,953	.7
Industry	273	.9	297	.2	620	.9
Debt-servicing	10,645	.9	14,133	.7	19,209	.1
Capital expenditure	12,469	.4	13,227	.2	19,053	.9
Total	93,722	.4	113,221	.4	161,486	.5

^* Budget figures refer to the consolidated accounts of the central Government

Source: Oficina Nacional de Presupuesto, Secretaría de Hacienda, Ministerio de Economía, Buenos Aires

International Reserves (US $ million at 31 December)


	2005	2006	2007
Gold (national valuation)	908	1,123	1,434
IMF special drawing rights	4,437	482	507
Foreign exchange	22,742	30,421	44,175
Total	28,087	32,026	46,116

Source: IMF, International Financial Statistics

Money Supply (million new pesos at 31 December)


	2005	2006	2007
Currency outside banks	43,764	53,812	67,067
Demand deposits at commercial banks	27,478	24,569	39,720
Total money	71,242	78,381	106,787

Source: IMF, International Financial Statistics

Cost of Living (Consumer Price Index for Buenos Aires metropolitan area; annual averages; base: 2000 = 100)


	2004		2005		2006
Food, beverages and tobacco	165	.1	183	.3	205	.5
Electricity, gas and other fuel	113	.8	118	.6	115	.9
Clothing and footwear	168	.2	187	.2	215	.6
All items (incl. others)	147	.5	161	.7	179	.4

2007: Food, beverages and tobacco 228.5; All items (incl. others) 195.2.

Source: ILO

National Accounts (million new pesos at current prices)

National Income and Product

	2004	2005	2006
Gross domestic product (GDP) at market prices	447,643	531,939	654,439
Net primary income from abroad	–26,087	–18,029	–15,843
Gross national income (GNI)	421,556	513,910	638,596
Net current transfers	1,758	1,781	1,903
Gross national disposable income	423,314	515,691	640,499

Expenditure on the Gross Domestic Product (preliminary)


	2005	2006	2007
Government final consumption expenditure	63,359	81,248	104,690
Private final consumption expenditure	326,275	386,305	475,680
Increase in stocks^*	–3,102	–2,124	–655
Gross fixed capital formation	114,132	152,838	197,491
Total domestic expenditure	500,664	618,267	777,206
Exports of goods and services	133,346	162,035	199,275
Less Imports of goods and services	102,072	125,863	164,409
Gross domestic product (GDP) in market prices	531,939	654,439	812,072
GDP at constant 1993 prices	304,764	330,565	359,189

^* Including statistical discrepancy

Gross Domestic Product by Economic Activity (preliminary)


	2005	2006	2007
Agriculture and forestry	44,760	48,759	68,559
Fishing and hunting	1,571	2,001	1,849
Mining and quarrying	28,820	36,235	35,552
Manufacturing	114,091	134,709	158,878
Electricity, gas and water supply	8,520	9,712	10,985
Construction	24,059	34,897	46,317
Wholesale and retail trade	57,999	69,127	86,314
Hotels and restaurants	12,559	16,344	19,970
Transport, storage and communications	44,428	53,565	63,986
Financial intermediation	21,402	28,048	36,349
Real estate, renting and business activities	53,599	65,962	81,902
Public administration and defence^*	26,621	33,629	43,511
Education, health and social work	34,350	46,943	61,172
Other community, social and personal service activities^†	20,047	24,862	30,440
Sub-total	492,825	604,793	745,784
Value-added tax	38,276	49,044	65,124
Import duties	3,877	5,139	7,015
Less Financial intermediation services indirectly measured	3,039	4,536	5,851
GDP in market prices	531,939	654,440	812,072

^* Including extra-territorial organizations and bodies

^† Including private households with employed persons

Balance of Payments (US $ million)


	2004	2005	2006
Exports of goods f.o.b.	34,576	40,387	46,456
Imports of goods f.o.b.	–21,311	–27,300	–32,585
Trade balance	13,265	13,087	13,872
Exports of services	5,289	6,453	7,666
Imports of services	–6,618	–7,640	–8,503
Balance on goods and services	11,935	11,899	13,035
Other income received	3,721	4,279	5,411
Other income paid	–13,003	–11,016	–10,851
Balance on goods, services and income	2,653	5,162	7,595
Current transfers received	1,114	1,235	1,391
Current transfers paid	–550	–706	–894
Current balance	3,217	5,691	8,092
Capital account (net)	196	89	97
Direct investment abroad	–676	–1,311	–2,119
Direct investment from abroad	4,125	5,265	4,840
Portfolio investment assets	–77	1,368	–1
Portfolio investment liabilities	–9,339	–1,731	7,932
Other investment assets	–2,395	1,935	–4,317
Other investment liabilities	–2,635	–3,661	–2,021
Financial derivatives liabilities	—	—	–127
Net errors and omissions	590	–1	919
Overall balance	–6,993	7,644	13,295

Source: IMF, International Financial Statistics

Citation: Finance (Argentina), in Europa World online. London, Routledge. Retrieved 21 November 2008 from http://www.europaworld.com/pub/entry/ar.ss.39

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Finance

Argentina: Finance

Budget (million new pesos, forecasts) *

International Reserves (US $ million at 31 December)

Money Supply (million new pesos at 31 December)

Cost of Living (Consumer Price Index for Buenos Aires metropolitan area; annual averages; base: 2000 = 100)

National Accounts (million new pesos at current prices)

National Income and Product

Expenditure on the Gross Domestic Product (preliminary)

Gross Domestic Product by Economic Activity (preliminary)

Balance of Payments (US $ million)

Budget (million new pesos, forecasts) ^*