_*Economy #_Overview: The economy is slowly recovering from the deep recession of the early 1980s. In 1988 real GDP grew by only 0.5% and in 1989 by 1.5%. The recovery was led by growth in the agriculture and fishing sectors, agriculture alone contributing 20% to GDP, employing about 11% of the labor force, and generating a large proportion of export earnings. Raising livestock, particularly cattle and sheep, is the major agricultural activity. In 1990, despite healthy exports and an improved current account, domestic growth remained weak because of government concentration on the external sector, adverse weather conditions, and prolonged strikes. Bringing down high inflation, reducing a large fiscal deficit, and avoiding frequent strikes remain major economic problems for the government.
_#_GDP: $9.2 billion, per capita $2,970; real growth rate 1% (1990 est.)
_#_Inflation rate (consumer prices): 129% (1990)
_#_Unemployment rate: 8.8% (1990 est.)
_#_Budget: revenues $1.2 billion; expenditures $1.4 billion, including capital expenditures of $165 million (1988)
_#_Exports: $1.7 billion (f.o.b., 1990);
commodities—hides and leather goods 17%, beef 10%, wool 9%, fish 7%, rice 4%;
partners—Brazil 17%, US 15%, FRG 10%, Argentina 10% (1987)
_#_Imports: $1.28 billion (f.o.b., 1990);
commodities—fuels and lubricants 15%, metals, machinery, transportation equipment, industrial chemicals;