Chaco Province - Economy

Economy

Chaco's economy, like most in the region, is relatively underdeveloped yet has recovered vigorously, since 2002. Its economy was estimated to be US$4.4 billion in 2006, or US$4,470 per capita (half the national average and the third-lowest in Argentina). Chaco's economy is diversified; but, its agricultural sector has suffered from recurrent droughts over the past decade.

Agricultural development in Chaco is linked to the quebracho wood, and the cotton production, which currently accounts for 60% of national production.

Agriculture accounts for an elevated 17% of output and includes crops such as soy, sorghum and maize. Sugar cane is also cultivated in the South, as well as rice and tobacco in lesser proportion.

Cattle consists of mixed races of Argentine cows with zebu, which adapt better to the high temperatures, grass shortage, and occasional flooding.

Industry contributes modestly to the economy (about 10%) and includes textiles (produced from local cotton), oil mills, and coal production, as well as sugar, alcohol and paper (all produced from sugar cane).

Chaco is home to the Chaco National Park, but tourism is not a well-developed industry in the province. The province's main airport, Resistencia International Airport, serves around 100,000 passengers annually.