Argentina

Argentina has experienced slow economic growth since the 1940s.This debt deal is expected to improve Argentina's creditworthiness.Savings and investment rates fell precipitously from the mid-1970s until 1989.Labor productivity fell ang poverty worsened.This economic performance was tranceable to chronic public sector deficits and endemic inflation.Structural deficits emerged from the post-war organization of the economy.By the early 1980s public expenditures approached 40 percent of GDP.Consumers enjoyed below-cost tariffs from public enterprise and lax collectioll practices.The situation was complicated by the South Atlantic War.The decade ended with two episodes of hyperinflation in 1989.