Updated July 29, 2022
Argentina: An Overview
Situated on the Atlantic coast of South America’s Southern
Upon taking office in 2019, President Fernández faced an
Cone, Argentina has a vibrant democratic tradition and
economic recession, high poverty, and unsustainable public
Latin America’s third-largest economy. U.S.-Argentine
debt. Fernández pledged to restructure Argentina’s debt and
relations have been strong in recent years, and Congress
opened talks with bondholders and other creditors. He also
maintains several areas of interest in bilateral relations.
rolled out several measures, including a food program and
Figure 1. Map of Argentina
price controls on basic goods, aimed at helping low-income
Argentines cope with inflation. Negotiations with
bondholders led to two debt-restructuring agreements with
private creditors in 2020 for over $100 billion in bonds.
Argentina at a Glance
Population: 45.8 mil ion (2021, IMF est.).
Area: 1.1 mil ion square miles, about the size of the United
States east of the Mississippi.
GDP: $489 bil ion (2021, current prices, IMF est.).
Real GDP Growth (constant prices): -2.0% (2019);
-9.9% (2020); 10.2% (2021, est.); 4.0% (2022 projected). (IMF)
Per Capita GDP: $10,658 (2021, current prices, IMF est.).
Key Trading Partners: Exports—Brazil (15.1%), China
(7.9%), United States (6.3%); Imports—China (21.4%), Brazil
(19.7%), United States (9.3%). (2021, EIU)
Legislature: Bicameral Congress, with 72-member Senate
and 257-member Chamber of Deputies.

Sources: IMF, World Economic Outlook Database, April 2022;
Source: CRS.
and Economist Intelligence Unit (EIU).
Political and Economic Environment
The Fernández government also sought a new International
Current President Alberto Fernández of the center-left
Monetary Fund (IMF) agreement to replace the $57 billion
Peronist-led Frente de Todos (FdT, Front for All) coalition
program entered into by the previous Macri government in
won the October 2019 presidential election and was
2018. In March 2022, the IMF approved a new $44 billion,
inaugurated to a four-year term in December 2019. He
30-month arrangement that, according to the IMF, sets
defeated incumbent President Mauricio Macri of the center-
pragmatic objectives along with policies to improve public
right Juntos por el Cambio (JC, Together for Change)
finances and reduce inflation. In June 2022, the IMF
coalition by a margin of 48.1% to 40.4%. The election also
approved the first review of Argentina’s progress on
returned to government former President Cristina
economic reforms under the program.
Fernández de Kirchner, from the leftist wing of the Peronist
party, who ran on the FdT ticket as vice president. A
In July 2022, Argentina’s economic situation deteriorated
unified Peronist ticket and Argentina’s economic
further, with accelerating inflation and the peso rapidly
deterioration, marked by high inflation and increasing
losing its value. Political infighting within the Peronist
poverty, were major factors in Macri’s defeat.
government led to the resignation of Minister of Economy
Martín Guzmán, considered the architect of Argentina’s
In November 2021 midterm legislative elections (for a third
recent IMF agreement, which was strongly criticized by the
of the seats in the Senate and half of the seats in the
leftist wing of the FdT. Guzmán initially was replaced by
Chamber of Deputies), the FdT lost its Senate majority but
Silvina Batakis, considered to the left of Guzmán, but on
remained the largest bloc in the Chamber of Deputies, albeit
July 28 President Fernández appointed the more moderate
without a majority. The economic impact of the
Sergio Massa, the leader of Argentina’s lower houses, as
Coronavirus Disease 2019 (COVID-19) pandemic and
head of a more powerful economy ministry that also
rising inflation were key factors in the legislative race.
oversees manufacturing and agricultural policy.
Argentina’s next presidential and legislative elections are
scheduled for October 2023.
Argentina was hard hit by the COVID-19 pandemic with
several surges of infections, most recently in February
2022, but deaths have declined significantly because of the
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Argentina: An Overview
country’s high vaccination rate. As of late July 2022, the
Leaders Summit on Climate and the Summit for Democracy
country reported over 129,000 COVID-19-related deaths
hosted by President Biden. In June 2022, President
since the pandemic began (with a mortality rate of 286 per
Fernández attended the Ninth Summit of the Americas,
100,000 people) and had fully vaccinated 83% of its
where he signed the Los Angeles Declaration on Migration
population, according to Johns Hopkins University.
and Protection to help reduce and mange irregular
migration in the hemisphere. President Biden invited
The IMF reports Argentina’s economy contracted 9.9% in
President Fernández to Washington, DC, for a bilateral
2020 due to pandemic-related restrictions but estimates it
meeting in late July 2022; the meeting was postponed due
began a strong recovery in 2021 with 10.9% growth. The
to President Biden’s COVID-19 diagnosis and is to be
IMF projects 4% growth in 2022, although inflation could
rescheduled.
jeopardize this outlook; through the end of June 2022, the
government reported 64% inflation for the previous 12
U.S. Foreign Aid and Other Support. The United States
months. The poverty rate was increasing in Argentina
provided $11.8 million in assistance to Argentina in
before the pandemic, reaching 35.5% at the end of 2019. It
FY2020 (latest full-year data available). U.S. assistance has
grew to 42% by the end of 2020 but declined to 37.3% by
supported humanitarian assistance to help with the influx of
the end of 2021, according to Argentina’s National Institute
Venezuelan migrants (currently estimated at around
of Statistics and Census.
170,000), training and equipment support to Argentina’s
military, assistance to support the elimination of child labor,
On foreign policy issues, the Fernández government shifted
counternarcotics assistance, anti-corruption assistance, and
Argentina’s stance on Venezuela in 2020, withdrawing
technical assistance to improve Argentina’s efforts to deter
recognition of Juan Guaidó as interim president and joining
money laundering. Argentina’s status as a major non-
the European-backed International Contact Group to work
NATO ally since 1998 makes it eligible for preferential
through dialogue to bring about transparent elections.
treatment for U.S. transfers of excess defense articles and
other defense cooperation. The U.S. International
Over the past decade, Argentina and the People’s Republic
Development Finance Corporation also supports financing
of China (PRC) have significantly increased their economic
for several projects in Argentina involving two wind farms,
engagement. Argentina signed a “comprehensive strategic
warehousing operations, and COVID-19 vaccine purchases.
partnership” agreement with China in 2014. In February
Since July 2021, the United States has donated 3.5 million
2022, Argentina joined China’s Belt and Road Initiative,
doses of COVID-19 vaccine (Moderna) to Argentina.
and President Fernández conducted a state visit to China
during the Beijing Winter Olympics. For Argentina, total
Trade and Investment Snapshot. The United States ran a
trade with China now almost equals trade with neighboring
$2.6 billion trade surplus with Argentina in 2021, exporting
Brazil. Since 2005, PRC policy banks have provided
$7.7 billion in goods to the country (led by machinery,
development financing for $17 billion in infrastructure and
mechanical appliances and oil) and importing $5.1 billion
energy projects; PRC companies have invested almost $11
(led by oil, gold, fish and crustaceans, aluminum, and
billion, with the majority in energy and mining; and PRC
wine). In 2021, U.S. services exports to Argentina
construction projects in Argentina were valued at $12
amounted to an estimated $4.8 billion and U.S. services
billion, largely in the energy and transport sectors. China
imports were almost $1.9 billion. The stock of U.S. foreign
also runs a space research facility in western Argentina; the
direct investment in Argentina was $12.5 billion in 2021,
U.S. Southern Command has expressed concern that the
led by information services, manufacturing, finance, and
facility could track and target U.S. satellites.
holding companies. Argentina has been on the U.S. Trade
Representative’s Special 301 Priority Watch List since
Argentina voted at the U.N. General Assembly to condemn
1996 due to protection and enforcement problems with
Russia’s 2022 invasion of Ukraine and to suspend Russia
intellectual property rights. In 2016, the United States and
from the U.N. Human Rights Council. Before the invasion,
Argentina signed a Trade and Investment Framework
however, President Fernández held talks with Russian
Agreement that has been the primary mechanism for
President Vladimir Putin in early February 2022 aimed at
discussing trade and investment issues.
strengthening ties with Russia.
Terrorist Bombings. Congress has expressed concern over
U.S.-Argentine Relations
the years about progress in bringing to justice those
U.S.-Argentine relations are characterized by robust
responsible for two terrorist bombings in Buenos Aires: the
commercial linkages and by shared interest and
July 18, 1994, bombing of the Argentine-Israelite Mutual
collaboration on such issues as democracy and human
Association (AMIA), which killed 85 people, and the
rights, civil nuclear cooperation and nonproliferation,
March 17, 1992, bombing of the Israeli Embassy, which
counterterrorism, climate change, science and technology,
killed 29 people. Argentina has linked both Iran and
and education.
Hezbollah (the radical Lebanon-based Islamic group) to the
attacks; in 2019, Argentina designated Hezbollah a terrorist
Both the Obama and the Trump Administrations engaged
organization. In the 117th Congress, H.Res. 1231 would
Argentina on various bilateral, regional, and global issues.
condemn the AMIA attack and would call for
The Biden Administration has continued this engagement,
accountability, and H.Res. 988 would call for accountability
including through a bilateral working group on defense
for the Israeli Embassy bombing.
issues and a joint committee on nuclear energy cooperation.
In 2021, President Fernández participated in the virtual
Mark P. Sullivan, Specialist in Latin American Affairs
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Argentina: An Overview

IF10932


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