Argentina benefits from rich natural resources, a highly educated population, a globally competitive agricultural sector, and a diversified industrial base. Argentina's post-crisis move to a more flexible exchange rate regime, along with sustained global and regional growth, a boost in domestic aggregate demand via monetary, fiscal, and income distribution policies, and favorable international commodity prices and interest rate trends were catalytic factors in supporting renewed growth between 2003 and 2007. The economic resurgence also enabled the government to accumulate substantial official reserves (over $44.9 billion as of late Augus
t 2009) to help insulate the economy from external shocks. A higher tax burden, improved tax collection efforts, and the recovery's strong impact on tax revenues supported the government's successful efforts to maintain primary fiscal surpluses since 2003.
Global financial turmoil and rapid declines in world commodity prices and economic growth during 2008 and 2009 brought Argentina's rapid rate of economic expansion to an end. In 2009, Argentina has experienced a deterioration of both domestic and international demand, complicating the fiscal situations of both the federal government and the provinces. The global economy’s recovery could ameliorate those pressures.