and 1998. This growth is stimulating infrastructure development and the renovation of productive facilities.The agricultural sector accounts for a large share of the Argentine GDP.The service sector has become an increasingly important component of the GDP growth.To reduce production costs and thus encourage competition in all sectors of the economy, the government has pursued a policy of deregulation. This Policy has been implemented through a Deregulatory Decree promulgated in November 1991 and the creation of the Deregulation Technical Advisory Committee.The data about Argentine trade balance and inflation in recent years are the following:TRADE BALANCE 2(billions of US$)1996 19971998 1999 2000Import22.228.529.5 24.1 25.14Export 24.026.426.4 23.3 26.29Difference 1.8- 2.1- 3.1 -0.8 1.1INFLATION RATE (consumer price index)1989:4,923.31990:1,343.91991:84.01992:17.51993:7.41994:3.91995:1.61996:0.01997:0.31998:0.71999: -1.82000: -0.7ECONOMIC, FISCAL AND MONETARY POLICIES Until the end of the eighties, Argentina had shown a disappointing economic performance, falling farther and farther behind, not only in comparison with the most developed countries, but also with respect to countries which, in the past, used to show a similar stage of development. This has occurred in spite of the high cultural level of its population and the considerable natural resources of this country.This dismal economic performance did come to a climax, culminating in a hyperinflation process. The wholesale price index grew in excess of 220% per month and of more than 5,000% for the twelve-month periods ended both in July and December 1989. In other words, prices soared more than 200 times in that period. A great number of different theories have been advanced in Argentina about the reasons for this unsatisfactory development, norma...
