Formosa Province - Economy

Economy

Remote and saddled by its inhospitable geography and climate, Formosa's economy has long been one of Argentina's poorest. Its economy in 2006 was estimated at US$2.1 billion, or, US$4,280 per capita. Its economy is the third smallest and second least developed in Argentina yet has shared in Argentina's recovery since 2002 very well.

Poorly industrialized, Formosa's economy is based on cattle and agricultural activities like cotton and fuit cultivation, these mostly centered in the Patino, Pilagás and Pilcomayo departments.

Cattle in Formosa exceed 1.5 million head and ranching has long been the agricultural mainstay of the province. Like elsewhere in Argentina, agriculture has long since been overtaken by other activities and amounts to about 10% of Formosa's output (somewhat more than average).

Cotton cultivation passed from over 100,000 tons at the end of the 1970s to 10,000 at the end of the 1990s because of the drop of the international price, and the fixed exchange rate. After the 2001 crisis production slightly revived to 50,000 tons a year in 2004. More than 70% of area sown with cotton belongs to small family-run farms of less than 10 hectares.

Cotton represents half of the agricultural wealth of the province followed by soybean (25,000 tons a year) and maize (55,000 tons), who have experienced a less dramatic invigoration after the 2001 crisis.

The production of bananas, mainly for domestic consumption, has a steady annual growing of 70,000 tons average. Citrus and juice production for exportation, specially grapefruit, is growing rapidly, with 1,200 planted hectares and an annual production of around 15,000 tons.

Others; honey (273 tons) and derivatives, timber-wood (140,000 tons) and textile industry (cotton, leather).

Tourist infrastructure is barely developed. Sites of interest include the city of Formosa, the Río Pilcomayo National Park, Bañado La Estrella, Laguna Yema, Herradura town, and Misión Laishí.