Six years of sustained growth from 2003 to 2008 gave Argentina a solid foundation to face challenges brought about by the current global crisis.
With greater macroeconomic resilience than in the past, the country stands out as an attractive destination for investment. The profitable and open local economy offers a wide range of opportunities in sectors with global growth potential. Talented human resources, plentiful natural resources, a vibrant culture and modern infrastructure compose a dynamic and competitive business platform.
Solid Macro Foundation
Argentina’s annual compound growth rate of 8.5% from 2003 to 2008 made it one of the fastest-growing economies in the world. Furthermore, despite a lower projection for 2009, economic analysts expect the country to remain one of the fastest growing economies in the region.
Investment in Argentina reached 23% of GDP in 2008, the highest level of the past three decades, and exports of goods and services more than doubled in the six year period to $82.6bn. In addition, Argentina registers sound fiscal and current account surpluses (3.3% and 2.3% were estimated for 2008 respectively) and the central bank’s foreign exchange reserves stand at an unprecedented level of $47bn.
Globally and Regionally Integrated Economy
More than 1000 overseas-based corporations operate in Argentina, many of which have done for more than half a century. Transnational companies represent some 67% of the country’s 500 largest non-financial enterprises.
Investments to increase production capacity and new firms entering the domestic market have led to the recent increase in FDI. Up 23% from 2007, FDI has exhibited a dynamic performance since 2004 to reach $8bn in 2008, a considerable increase over the annual average net of privatisations of $5.3bn in the 1990s.
As a full member of Mercosur – a customs union which also includes Brazil, Paraguay and Uruguay – Argentina offers investors access to a large and attractive regional market of 38 million inhabitants with a combined GDP of $2000bn, as well as preferential access to other markets in Latin America through the bloc’s free trade agreements.
Skilled Human Resources
Another key structural factor is the country’s internationally recognised well-trained and highly educated pool of human resources, including talented entrepreneurs and professionals alike.
Argentina ranks first in the region in educational attainment and adult literacy, with educational levels similar to developed countries such as Italy and Israel. Furthermore, English penetration is among the highest in the non-English speaking developing world.
Argentina is one of the most geographically varied and resource-rich territories in the world with extraordinarily fertile agriculture lands, unexploited forest resources, mining deposits and rich fisheries. As a key producer and exporter of numerous commodities and food products, it is the world’s leading exporter of sunflower oil, soybean oil, pears and lemons.
Argentina is also a growing producer of technological and differentiated goods and services. It is the second largest producer of genetically modified crops; a growing developer of software and IT; and a world renowned producer of high-quality gourmet beef.
It is also the world’s fourth largest producer and exporter of television content, a position which reflects its enormously rich and varied culture. From music, dance and theatre to cinema, literature and fine arts, the intense cultural life fuels a growing creative industry.
Supportive Public Sector for FDI
Argentina’s Investment Development Agency, ProsperAr, is committed to support, attract and expand FDI for sustainable and competitive development. ProsperAr provides investors in Argentina – both foreign and local –with personalised professional services (advisory, facilitation and after care) throughout the investment process.