historyanalysisOur World in Data1900–1970s · Argentina
Argentina was richer than Spain until about fifty years ago
Around the start of the twentieth century Argentina was one of the richest countries in the world, with income per person above many European nations, including Spain. Its wealth came from exporting grain and beef to Europe, supported by a fast-growing population and heavy investment from Britain. Over the following decades, economic instability, political upheaval and protectionist policies eroded that lead. Spain, meanwhile, grew rapidly after the 1950s, and by the late twentieth century it had overtaken Argentina.
The reversal is a striking example of how a country's rank can change over generations, and why economists study institutions and policy choices as drivers of long-run growth. It is often cited in debates about what makes countries prosper.
Several countries have seen their relative wealth rise or fall dramatically over a century, including Argentina, which went from among the richest to middle-income. Economists often connect such reversals to shifts in institutions, political stability and openness to trade.
