Why invest in Argentina
Posted in Argentina
Argentina has a highly diversified economy with the primary, secondary and tertiary sector representing respectively 14%, 21% and 65% of the economy.
Argentina offers a range of profitable investment opportunities supported by its highly qualified human resources, who are known for their versatility and talent; a primary sector internationally recognised for its abundance of natural resources and high productivity levels; a modern and permanently expanding infrastructure; a solid macroeconomic context ensuring competitive costs; and a public sector actively supporting business.
Argentina, a country with strong ties to Latin America is a full member of the MERCOSUR with preferential access (0% tariff) to a regional market of 275 million people and a combined GDP (PPP) of US$ 3.5 trillion, a member of Union of South American Nations (UNASUR); Latin American Integration Association (ALADI); and Economic Commission for Latin America and the Caribbean (ECLAC). It is also a member of the G-20 and a founding member of the World Trade Organization (WTO).
Argentina is fully committed to developing multilateral investment as demonstrated by its role as an Observer at the Investment Committee of the OECD since 1996. In addition, it is a member of the Multilateral Investment Guarantee Agency (MIGA) and a member of the World Bank group, whose objective is to mitigate the investment risks and provide advice and information on investment opportunities in emerging economies.
Sustainable economic growth
Argentina is one of the fastest-growing economies worldwide, a leader in Latin America for the past decade.
Sustainable macroeconomy: sustained external surplus, accumulated international reserves, consolidated fiscal solvency and a substantial reduction in public debt.
High investment rate in the last 30 years (24.5% of GDP in 2011).
Record-high exports of goods and services in 2011, close to US$ 100 billion.
The region’s highest per capita income in terms of purchasing power (2011).
Dynamic domestic market: 8% annual expansion in consumption in real terms since 2003.
Five million new jobs created since 2002; a decrease in unemployment levels from 21.5% (2002) to 6.9% (2012).
Improved income distribution: the Gini ratio has been consistently dropping in the 2003–2011 period, from 0.53 to 0.43.
Diversified productive matrix with investment opportunities in every sector.
Great technological development in the agribusiness value chain, including innovation in seeding, direct sowing, precision agriculture, agricultural machinery production, silo bag storage and vaccine development for animal health, among others.
Leading country in the international food market, with exports exceeding US$ 25 billion in 2011.
One of the world’s main exporters of vegetal oils, cereals, meat, fruit, honey and wine, among other products.
High sanitation and environmental standards that meet the most demanding requirements from global food and beverage consumers.
Industrial structure with a strong tradition in diverse productive sectors: agro-industry, textiles, footwear and handbags, chemicals and pharmaceuticals, capital goods, durable consumer goods, automotive and auto parts, etc.
Accelerated development of renewable energy, biotechnology, software, creative industries and other frontier sectors.
Highest proportion of FDI projects with high technological intensity in South America (ECLAC).
Abundant and diverse natural resources
8th largest country in the world and 2nd in Latin America (3.8 million km2).
9th largest extension of agricultural area in the world with 170 million hectares of arable lands (FAO).
Highest agricultural productivity levels in the world.
Ample forest resources: 1.2 million hectares of planted forests (FAO).
4,500 km of mountain ranges with mining resources: gold, copper, lithium, carbon, lead, zinc, tin, silver and potassium.
Vast oil and gas resources with exploration and exploitation opportunities.
Ranked 3rd worldwide in shale oil and shale gas reserves.
High development potential for hydraulic energy, which accounts for more than one third of the country’s total electricity output.
Promising developments in renewable energy (wind, biofuel, solar, geothermal, biomass).
Skilled and highly creative workforce
Workforce internationally renowned for its skill set, creativity and versatility.
More than 98,000 graduates from higher education programs and almost 11,000 postgraduate students from 115 universities across the country enter the labour market each year.
Economically active population (EAP) with the highest education level in Latin America.
Latin American country with the highest number of Nobel Prizes awarded in science (three prizes).
Highest level of public investment in education in the region (equal to 6% of GDP).
“Mercosur is one of the top markets for PSA Peugeot global development strategy. Moreover, the continuous investments in our production centre in El Palomar confirms Argentina´s great possibilities as a regional sourcing hub”
JAVIER VARELA SOBRADO, President & General Director, PSA Peugeot Citröen Argentina
“The high standard of technology and innovation, the pool of local creative talent of international quality and the competitive cost level were the main reasons for choosing Argentina. We firmly believe that the country has the ability to become a creative player on the global scene.”
PIERLUIGI GAZZOLO, Chief Operating Officer, MTV Networks International