Catamarca Province - Economy

Economy

Catamarca's economy is Argentina's smallest, though still developed. Its 2006 economy was estimated at US$1.7 billion, or, US$5,280 per capita, 40% below the national average. Less diversified than most in Argentina, agriculture has never played an important role in the Catamarca economy (contributing less than 5% to its output). The province's livestock includes around 200,000 head of cattle, 100,000 sheep, and 150,000 goats, with an annual production of 7,000 tonnes of beef, 5 tonnes of mutton/lamb, and 10 tonnes of pork, although outbreaks of foot and mouth disease has kept at times the production from reaching full potential. Large numbers of cattle, fattened in the alfalfa fields of Pucara, Tinogasta and Copacabana, were driven into northern Chile across the San Francisco pass and mules were bred for the Bolivian market in 1910's.

Mining was important in the past. After becoming less active in the early 1990s, grew to now account for over 20% of the economy. Catamarca is home to one of the largest copper gold mines in the world, Bajo de la Alumbrera, which produces approximately 600,000 ounces of gold and 190,000 tonnes of copper annually. The mine employs over 1,000 people and contributes hundreds of millions of dollars in taxes and royalties to the federal and provincial governments.

The agriculture of Catamarca focuses on wood (walnut), vineyards, olive, citrus, cotton and tobacco, for which the government gives tax cuts to facilitate economic growth, but so far with poor results and no oversight.

Tourism is a lesser contributor to the economy in Catamarca, with more than 3,465 beds in hotels and other types of accommodation. Although high hopes are focused in this industry, lack of infrastructure, service-oriented and trained businesses and an overall endemic corruption culture, tourism has yet to become a strong element the local economy. Mountains and geological formation are the main attraction, with sights such as Antofagasta de la Sierra, Balcones del Valle, the Snow-Covered Summits of Aconquija, and the Pass of San Francisco. The San Francisco Pass, an endeavor developed during the Castillo Administrations (1991–2003) at a high cost in public funds has failed to bring trade and tourism to the underdeveloped Tinogasta county. Cultural attractions include the city of Catamarca, the archaeological park Las Huellas del Inca, prehistoric petroglyphs, local music, handcrafts and wines.