Argentina Was Not the Productivity and Economic Growth Champion of Latin America

Abstract

Former administration (2002-2015) claimed that under their leadership Argentinaexperienced record-breaking GDP growth. However, this article shows that Argentina´s GDP growth was underwhelming. Statistical estimates produced by the new Argentine government support the ARKLEMS project´s evidence that the GDP and Total Factor Productivity (TFP) growth was overestimated.Distortions were large and discretionary and affected all industries, independent of the downward bias of the Consumer Price Index and the Wholesale Price Index. New stylized facts counter the claims of the Kirchner administration. First, real GDP growth in the 2002-2015 period was weaker than in the 1990-1998 period. Second, GDP only grew in the subperiod 2002-2007 because of the commodities boom. Third, GDP growth in Argentina wassecond lowest among ten Latin American countries in the 1998-2015 period. Fourth, GDP growth during the 2002-2015 period was extensive in nature, based on factor accumulation,not total factor productivity, so was not sustainable