Economy Of Argentina And Opportunities For Foreign Investors
Specialists underline that the economy of Argentina has been recently on
rise after the recovery from a severe economic crisis of 2001/2002. Over
the last 5 years, the country’s GDP growth has been quite high: 9.2% in
2005, 8.6% in 2007 and 6.6% in 2008 (slowed down by the international
financial crises). Such progress was achieved at the expense of
industrialization, national debt restructuring and flexible fiscal policy
of the government. Current GDP (ppp) is 585 billion USD, and GDP per
capita is 14,500 USD.
Traditionally, the country’s economy was based on the production of
agricultural goods, and now Argentina remains among the world’s leading
exporters of such products as corn, wool, wheat, sunflower seeds,
soybeans, fruit, meat, tobacco, food processing and other related
products. Besides, the country has numerous natural reserves of important
minerals, including coal, iron ore, copper, zinc and tin, as well as vast
resources of natural gas and oil, which make the country self-sufficient
in its needs for energy.
Argentinean economy enjoys the benefits of highly qualified and educated
labor force, which was estimated in 2008 as 16.27 million people. More
than a half of the labor force is employed in services (56.7%), the share
of industrial workers is 34%, and the rest are employed in agriculture
and other economic sectors. In 2008, the urban unemployment rate in
Argentina totaled 7.8%. At that, government spends over 13% of the
national budget for various labor and education programs.
Economic environment of Argentina is one of the most attractive markets
among the national economies of Latin American countries. A lot of
financial and other investments were recently received from such
developed countries as Japan, the U.S., Germany, Italy, Spain, Canada,
the United Kingdom, France, China, and many others. It is estimated that
currently, about 450 companies owned by the U.S. investors operate in
Argentinean market, giving a job to more than 150,000 local employees.
The most attractive and profitable industries for overseas investors
include manufacturing, real estate, construction and transportation,
telecommunication, mining and energy sectors. However, current
considerable governmental debts to international financial institutions
and numerous arbitration claims of the creditors affect investment and
financial climate of the country.
Therefore, the present Argentinean market and economic environment should
be considered favorable for starting a new business or investing funds.
At that, when thinking about possible international trade and the
opportunities to buy high-quality goods from Argentinean companies or
enterprises, many specialists would recommend buying agricultural
products, such as wheat, soybeans, sunflower oil, corn, cereals, as well
as fruit, meat, a variety of food processing products, along with energy
products, refined fuels, vehicles, industrial and high technology goods.
As to possible investments, such sectors as telecommunication,
agriculture, hotel and tourism business, services, energy and petroleum
are currently among the most attractive and lucrative economic sectors in
Argentina. Finally, knowing the specifics of the local market and the
needs of Argentinean business enterprises and companies, it is possible
to suggest selling such products as industrial machinery, tools and
equipment, scientific equipment and instruments, manufactured goods,
chemicals and various organic materials, pharmaceuticals and medical
equipment, and so on.