Economic map of the Province of Santa Cruz, Argentina
Santa Cruz, with a small population and rich in natural resources, has long had one of Argentina's most prosperous economies. Its 2006 output was estimated at US$3.3 billion or a per capita income of US$16,553.
The province economy, with the possible exception of Neuquen's, is the country's least diversified, however. Fully half its output is accounted for by the extractive sector (petroleum, gas and mining), with an annual production of 4.5 million m3 of petroleum and 3 million m3 of gas, mainly in the Pico Truncado, Cañadón seco and Cerro Redondo extracting facilities. Cerro Negro mine by Gold Corp. has in recent years contributed to the growth of population of Santa Cruz through its Gold mining operations and subsidies to local public education and private sector.
The coal production at Río Turbio, Argentina's only active coal mine, is of around one million m³ per year. Mining includes gold (Cerro Vanguardia Mine), clay, gypsum, salt and others.
The second most important productive activity is that associated with sheep. With 7 million heads, Santa Cruz is the second main producer of wool and meat after the Province of Chubut, most of which is designated for export. Sheep farming revived in 2002 with the devaluation of the peso and firmer global demand for wool (led by China and the EU). Still there is little investment in new abbatoirs (mainly in Rio Gallegos), and often there are phitosanitary restrictions to the export of sheep meat. Livestock also includes small numbers of cattle, and in lesser numbers pigs and horses.
Sea fishing, and its later industrialization at the fishing ports of Puerto Deseado, Puerto San Julián, Puerto Santa Cruz and Río Gallegos produces prawn, squid, hake and dozens of others. Most of the production is frozen and exported.
There is little agriculture due to the arid nature of the soil. There is a small timber industry fed by both forests and planted trees, of which the wood of the lenga is the most exploited.