Argentina - Economic position and prospects

r Ic W URW rQ | REST R iC T E D %EVrx d akOK R e p o r t N o. WH-97a _ _j > vR - | may ilbe quoted as reprea\ s iew;accz n ccpts no | respolsui'T'y TOF WHO 9l-U C C U tX.6B s1 W Is ul Zs*l ur lFWl INTERNAT'IONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ECONOMIC POSITION AND PROSPECTS OF ARGENTINA June 23, 1960 Departnient of Operations Western Hemisph.ere  CURRENCY EQUi s. L .iENTS Free rate (April 30, 1960) U.S. $1. 00 = 83.20 pesos U. S. $1 million = 83. 2 million pesos l peso = $0.012 1 million pesos = $12, 000 approx.  TABLE OF' CONI'TThW.S Page No. BASIC DATA ................. i SUMMARY END CONCLTISIONiS . . . . . . . . . . . . . . .ii I. INTRODUCTION Historical Perspective . . . . . . . . . . . . . . . 1 Argentina in 1955 - Aftermath of the Peron Regime . 1 !I. PTHE ERIOD OF TRANSITIPO-N: 1955-1958 Introduction . . . . Trade and Payments . . . . . . . . . . . . . . . . 5 Inf:Lation . . . . . . . . . . . . . . . . . . III. Tfn ARUENITIJE ECONO.Y IN 1958-1960 Change in Petroleum Policy . . . . . . . . . . . . 8 Power: State versus Private Ownership . . . . . . . 8 The Frondizi Crisis . , . . . . . . . . . . . . . 9 The Stabilization Program . . . . . . . . . . . . . 10 Short-run Effects . .. . . . . . . . . . . . 12 Production . . . . . . . . 0 . . . . . . . . 12 Forleign Trade ancl Payments . . . . . . . . . . . . . 1 Public Finance . . . . . . . . . .. . . . . 15 Money and Prices ........... ... 16 IV. THE BAANJCE OF PAM:NTS OUTLOOK Export Prospects ................. 18 Changes in Import Structure . . . . . . . . . . . . 20 V. EVALUIATIONS AND CU1qCLUSI0M Budget Outlook . .* . . . . . . . . . . . . . 23 External Public Debt and Debt Service . . . . . . . 25 Rehabilitation of Transport and Power Systems . . . 27 Ind.ustrial Efficiency . . . . . . . . . . . . . . . 28 Growth ProsDects . . . . . . . h . . . . . . . . 29 CHARTS .. .. ... . . . . . . . . FollowinC Pav,e iro. Money Supply. Cost of Livinrg. and Gross National Product 6 Cosit of Living (Buenos Aires) . . . . . . . . . . . . . 6 Import Groups in % of Total Imports. . . . . . . . 1 Hea.t: Production, Consumption and Exports. 18 Individual Consumntion of Heat . . . . . . . . . . . . 18 APPEiWDIX A: EXPORT PROJECTTONS STATISTICAL APPFNTX Ti;t of Tables  - i - T r' :T (' TTh'TA Area: 1,079,965 square miles (7 x arablo ard pastoral) Poulation, rid-1959: 20,613,900 a_re.>age mni -p1 iJnerease 1Q/-r9:Q I 8' GTross -N.ational_ roduct, 195S: 317 billion, ,s^s Per anit. u. oduct, . 15ii > u .L-Jgl. esat ):~LJL US U~ ' (x, 400 ~ ~ L' ~ Livestock and A.griculture 19.15% Gross Doiaestic Investment 20. ;,7- .jfl;nig ar nd si<,> 22. T-ivaJ Cons4t10 - '.4,.:_' Constructioni 5.3/0 Government Expenditures 13. '-j Services 53 . 4E