Argentina is rich in natural resources, has an export-oriented agricultural sector, and a diversified industrial base. Most relevantly, Argentina is known for its highly literate and educated population. However, over the last ten years, the country has suffered from economic problems that (particularly in the year 2000) lead investors to become sceptical of the government's ability to pay debts and maintain its goal of keeping the peso on par with the U.S. dollar. The economic situation worsened in 2001, causing massive bank withdrawals reminiscent of the Great Depression. Unfortunately, this promoted even further decline in consumer and investor confidence. In January of 2002, the peso's peg to the dollar was lifted and the currency was floated by the Argentine government. The exchange rate plunged, but by mid-year, the economy had finally stabilized. From that point on, growth has been steady, supported by a revival in domestic demand, solid exports, and favourable external conditions.
Currently Argentina is considered an emerging market by the FTSE Global Equity Index, and is one of the G-20 major economies.
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