Embajada en Estados Unidos de América

Invest in Argentina

Solid Economic Fundamentals
 
Since President Mauricio Macri took office in December 2015, the government has been working to provide a macroeconomic environment and a stable and suitable regulatory framework that turn Argentina into an attractive destination for Foreign Direct Investment. A suitable investment climate, together with the country’s comparative advantages and growth prospects, offer unique investment opportunities.
 
Regulatory and macroeconomic improvements

  • Elimination of capital repatriation restrictions
  • A floating exchange rate and recovery of the central bank’s reserves
  • Re-integration into the global capital market
  • Elimination of the fiscal deficit and a drop in the inflation rate to single digits over a period of four years
  • Elimination of export tariffs (except soybean, reduced to 30%) and easing of import permits
  • Gradual decrease in subsidies for public services and increased rates to promote investments in this sector
  • Reliability of national statistics (INDEC).

 As a result of these initiatives and the positive outlook, the country risk has dropped from 620 basis points in September 2015 to 415 in March 2016. A private sector with low debt levels provides a solid platform to finance investment and consumption, thereby setting the economy back on track towards growth.
 
Comparative advantages of Argentina

A large and diversified economy

  • 3rd among the largest economies in the region, with a GDP of $500 billion (after Brazil and Mexico)
  • 2nd highest GDP per capita in the region in terms of PPP ($22,600, after Chile)
  • 4th among the countries of the region in terms of population (43 million), with 93% in urban areas; an average age of 30; and a vegetative growth of 0.9% annually. With a demographic dividend until at least 2030
  • An unemployment rate under 6.6%. ~ 75% of jobs are in the service sector 

Availability of natural resources

  • 8th largest country in the world (2.8 million km2), with 53% of arable land
  • Extensive coastline (4,700 km)
  • 8 major oil and gas fields (5 conventional, 3 unconventional, offshore exploration potential)
  • Unexploited metal and mineral reserves (copper, gold, silver, lithium, potassium)
  • Optimal conditions for renewable energy development (wind, solar)

 
High-quality human resources

  • High quality, international level labor force, with demonstrated technical abilities, creativity and versatility
  • Ranks 1st in the Human Development Index, and in the Latin American education index
  • 98% literacy. ~ 110,000 college education graduates per year
  • Ranks 2nd among countries with the highest proportion of middle class and lower Gini coefficient in the region
  • Internationally renowned scientific and technological institutes (CONICET, INTA, INTI)
  • Entrepreneurship - successful ventures (Mercado Libre, Taking Off, Globant)

 
Solid institutional framework

  • Over 30 years of democratic governments, five changes in governments made up by different political parties since 1983
  • Legal and regulatory frameworks inspired by developed countries
  • A system of republican and federal government guarantees autonomy to provinces
  • A wide range of agreements and bilateral and multilateral treaties (G20, Mercosur, UNASUR)
  • Member of the International Centre for Settlement of Investment Disputes of the World Bank (ICSID)

 
Developed infrastructure

  • Extensive road and rail networks throughout the country (+35,000 km each), 43 ports and 54 airports
  • High level of connectivity, with 75% broadband and 141% of mobile devices
  • Extensive energy coverage through gas pipelines and the National Interconnected System (SIN) for electricity
  • All of the above shows that Argentina is ready to position itself as an attractive destination for Foreign Direct Investment

 
Attractive value proposition

  • Low asset valuation
  • Attractive domestic market (significant size and purchasing power)
  • Access to talented and raw materials at affordable cost management
  • Unrealized consumption and investment (logistics, infrastructure, services, energy)
  • Potential for recovering historical leadership in particular sectors (for example meats, grains, oil and gas)