Economic Model of Argentina Free Essay Example, 1000 words

Argentina is a free enterprise economy, having a strong reserve of around $50billion. It is the 3rd largest economy of Latin America. It is an emerging economy that benefits from Agriculture and Manufacturing. Being a part of the G20 countries, the economy of Argentina is dependant on its natural resources. The argentine economy rests on its exports and its manufacturing and industrial sector. A major portion of its labor force is a part of commerce and manufacturing and also agriculture. The country has started to increase taxes in order to decrease reliance on debt and remove fiscal imbalance. Zinc and Copper deposits have been found in the Northwest allowing for a mining sector as well. The country has transitioned into a flexible exchange rate regime and expansionary fiscal and monetary policies. Privatization in many sectors and regulation has somewhat allowed the country to benefit and grow in the long run. (Garcia)Argentina would need to target inflation along with some tigh tening of the fiscal policies to remain on its growth path in the long run. The extremely high level of subsidies would need to be readjusted since a large amount is being paid in the context. We will write a custom essay sample on Economic Model of Argentina or any topic specifically for you Only $17.96 $11.86/page Also, measures need to be taken to ensure geographical dispersion with respect to building infrastructure. If the unemployment numbers are kept in check and better infrastructure is provided to industrial zones the country would become the best economy in South America.