The above graph demonstrates the annual percentage growth rate of GDP at market prices based on constant local currency from 1961 to 2010. As the graph illustrates, the lowest GSP of -10.89 occurred in 1991, while the highest of 12.67 occurred in 2002.
Argentina’s economy went into freefall during 1999 to 2002, with a 10.9 per cent GDP contraction in 2002, because its 1:1 peg of the Argentine peso to the US dollar combined with government over-spending, proved unsustainable. This triggered a debt crisis. In 2002, the economy bottomed out, with real GDP 18 per cent smaller than in 1998.
Real GDP rebounded to grow by an average 8.5 per cent annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies.