2012 Argentina

The economic boom that ran until 2011 has officially ended in Argentina. While the rapid growth is largely thought to have been the result of Chinese purchase of grain exports, the Argentine government saw it as a vindication of their expansionary policies and welfare state ambitions. The country's GDP growth rate is expected to slow down to 2.2% in 2012, from the 8.9% last year (Oppenheimer, 2012). Chinese grain purchases remain high and commodity prices are high as well, leaving the political situation as the main culprit for the growth problem and the high (25%) inflation rate. Public spending continues to increase -- sometimes financed by the central bank and even from the Social Security System (Ibid).

Argentina's major industries remain in agriculture and manufacturing. Brazil is the major export market, and its economy is tied to Chinese demand, so a lot of Argentina's potential is tied to...
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