Argentina, endowed with abundant natural resources and a well-educated workforce, holds significant potential for sustained and inclusive economic growth. The country is home to the world's second-largest lithium deposits, the second-largest gas reserves, and the fourth-largest petroleum reserves. Additionally, Argentina ranks third in global soybean production.
Despite these advantages, Argentina has faced challenges in achieving consistent economic growth. At the beginning of the 20th century, it was the world's seventh-wealthiest nation due to an open economy and progressive immigration policies. However, over time, Argentina has experienced economic decline, transitioning from a high-income to a middle-high-income status. Economic instability has played a key role in this downturn, resulting in an average annual GDP growth rate of just 1.8 percent over the past fifty years—significantly below the Latin American average of 3.2 percent. If Argentina had matched regional growth rates, its per capita GDP would be 60 percent higher today.
The report underscores three critical areas for Argentina to address in order to overcome these development challenges and pursue sustainable long-term economic growth: diversifying its economy beyond raw materials reliance; opening up to international trade; and providing high-quality education along with continuous training to cultivate a highly skilled workforce capable of meeting demands in a dynamic, technology-driven global economy.