More About Argentina

Argentina Population: 39,144,753 (July 2004 est.)
Languages: Spanish (official), English, Italian, German, French
Capital: Buenos Aires
Government Type: Republic
Independence Day: 9 July 1816 (from Spain)
Legal System: Mixture of US and West European legal systems; has not accepted compulsory ICJ jurisdiction.
Currency: Argentine peso (ARS)

Executive Branch:

Chief of State: President Nestor KIRCHNER (since 25 May 2003); Vice President Daniel SCIOLI (since 25 May 2003); note - the president is both the chief of state and head of government.

Head of Government: President Nestor KIRCHNER (since 25 May 2003); Vice President Daniel SCIOLI (since 25 May 2003); note - the president is both the chief of state and head of government.

American Embassy: Avenida Colombia 4300, C1425GMN Buenos Aires
Mailing Address: International mail: use street address; APO address: Unit 4334, APO AA 34034
Telephone: [54] (11) 5777-4533 FAX: [54] (11) 5777-4240

Economic Overview: 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 recurring economic 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 inflation picked up rapidly, but by mid-2002 the economy had stabilized, albeit at a lower level. Strong demand for the peso compelled the Central Bank to intervene in foreign exchange markets to curb its appreciation in 2003. Led by record exports, the economy began to recover with output up 8% in 2003, unemployment falling, and inflation reduced to under 4% at year-end.

International Disputes: UK continues to reject sovereignty talks requested by Argentina, whose constitution still claims UK-administered Falkland Islands (Islas Malvinas) and South Georgia and the South Sandwich Islands, but in 1995 ceded the right to settle the dispute by force; Beagle Channel islands dispute resolved through Papal mediation in 1984, but armed incidents persist since 1992 oil discovery; territorial claim in Antarctica partially overlaps UK and Chilean claims (see Antarctic disputes); unruly region at convergence of Argentina-Brazil-Paraguay borders is locus of money laundering, smuggling, arms and drug trafficking, and fundraising for extremist organizations; uncontested dispute between Brazil and Uruguay over Braziliera Island in the Quarai/Cuareim River leaves the tripoint with Argentina in question.