t short-lived, recession in 1995; a series of reforms to bolster the domestic banking system followed. Real GDP growth recovered strongly, reaching almost 9% in 1997. When President Carlos Menem took office in late 1980's to the early 1990's, the country had piled up huge external debts on the Argentinean economy. Inflation had reached 200% per month, and output was plummeting. To combat the economic crisis, the government embarked on a path of trade liberalization, deregulation, and privatization. However, high inflation rates beginning in the early 1970s and lasting into the early 1990s coupled with the 1988-90 recession have cut into the nation's buying power and necessitated sharp cutbacks in imports in order to bring about a more favorable balance of trade. In recent decades Argentina has experienced both inflation and recession. It carries a massive national debt, which nearly doubled after 1978 and by the late 1980s had virtually crippled the economy. Argentina's economy has traditionally been based on agriculture, but the industrial and service sectors have also grown in importance in recent years. The inflation in the Argentinean economy was horrible and the unemployment in the economy for both male and female had increased. In 1995, the percentage for unemployment for males was 16.5%. The female unemployment is worst, at 22.3%. The average for unemployment for both female and male unemployment is about at 18.8%.3In 1997, Argentina was ranked 9th for the lowest inflation worldwide, which include parts of Europe the Bahamas, and some parts of Africa. Success in fighting inflation will depend on how open the Argentina economy becomes and the general health of the economy in South America as a whole (i.e. Brazil, etc.), which means the Argentinean economy has to rely on its neighbors around them like Brazil, for example, because its Argentina's closet neighbor's to help them out if they need it.4Chapter 2 - Governmental / ...
