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Argentina
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KenyaArgentina
3 Chapter Investment Environment
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GDP and GDP growth rate
In 2018, the GDP was worth 518.50 billion USD, growth rate was at -0.20 %, the annual growth rate was at -5.80%.
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Finance and External Debt
External Debt in Argentina decreased to 275827.96 USD Million in the first quarter of 2019. The External Debt accounted for 51.8 % of the country's Nominal GDP in 2018. The economy is in recession after markets reacted to attempts to reduce large fiscal deficit, the reliance on foreign financing and high interest rates (due to tight monetary policy). This situation is likely to worsen social conditions.
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Market Overview.In April of 2018, markets reacted with a reversal of capital inflows, increasing currency inflows slowdown due to a record drought, due to this the Argentinian peso depreciated and generated on severe liquidity challenges. Domestic demand and confidence in the market declined, this led to an end of the seven quarters of growth. This account deficit is expected to decrease due to an increase on exports.Stock market exchange.
The MERVAL is a major stock market index which tracks the performance of large companies based in Argentina. It is a basket weighted index. The market value of a stock portfolio is selected according to the market share in the Buenos Aires Stock Exchange, number of transactions and quotation price. The latest rate is 26585.97 points, the MERVAL decreased 4511 points or 14.51% since the beginning of 2019, according to trading economics this is due to a contract for difference (CFD) that tracks this benchmark index from Argentina.Stock level relative to the United States.
The Latest stock market rate in 2019 for the United States was of 25,628.90 points and Argentina´s amount is 6585.97 points.
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Trade
Argentina presented a trade surplus of 951 Million USD in July 2019, in comparison with 772 million USD deficit of the same month of last year, the expectation was 684 million surpluses but the amount was more than expected. In 2017, Argentina was considered the 45th largest export economy in the world. In 2017, Argentina exported $ 59.2 billion and imported $ 66.5 billion, resulting in a negative trade balance of $ 7.25 thousand million.Exports.
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Industry Trends
It is a leading food producer with large-scale agricultural and livestock industries. In addition, Argentina has significant opportunities in some manufacturing subsectors, and innovative services in high tech industries. Córdoba is Argentina's major industrial center. It is the center of metalworking, especially for motor vehicle production. GDP From Manufacturing in Argentina decreased to 99191.28 ARS Million in the first quarter of 2019.
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Foreign Direct Investment.
Inward FDI flows to Argentina have been unstable for years, incoming flows increased between 2016 and 2017 due to new policies to attract FDI and modernize infrastructure, this led to a recovery on the economy. Argentina published a decree with 170 measures to eliminate rules and regulations that could reduce the country's competitiveness. These measures contributed to Argentina being the 26th country to receive more foreign investment in 2017. In 2018 Argentina had to face one of the worst droughts in decades, the peso and stock markets collapsed, which generated fear among investors, coupled with the lack of confidence due to the crises that affected the economy in the late 1990s and early 2000s. However, although there were damages due to these problems, opportunities were taken to buy at a low price, thanks to the policies of President Macri. President Macri's government seeks to attract considerable investment in key sectors such as infrastructure and transportation, electricity and renewable energy, mining, oil and gas, agricultural industry, telecommunications and state-of-the-art technology, and tourism..png)
By industry.
By country.
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Infrastructure
The World Economic Forum´s report "The global competitiveness report 2017-2018" puts Argentina into the following rankings in their comprehensive evaluation of infrastructure.
Roads.By 2017 the total amount of the road network including the length of the paved and unpaved portions was 281,290 km, 117,616 km of paved roads and 163,674 km of unpaved roads. Argentina's road network is divided into main (troncales), secondary and tertiary roads. The main road network has a length of 38,000 km, that include national routes, motorways and concessioned highways. Secondary road network, with an extension of 178 000 km, includes all Argentine provincial routes. Tertiary road network, with approximately 400,000 km, it is formed by all the municipal or communal roads.Railways.
The total route length of the railway network and of its component parts by gauge, by 2014 was 36,917 km, with an standard gauge of 2,745.1 km 1.435-m gauge (41.1 km electrified), narrow gauge of 7,523.3 km 1.000-m gauge and broad gauge: of 26,391 km 1.676-m gauge (149 km electrified). This are some of the railway routes in Argentina, the Tren Patagonico from Viedma to San Carlos de Bariloche, Ferrocentral is the private-owned rail company that provides service (day and overnight) from Buenos Aires Retiro Station to areas in northern Argentina such as Rosario, Cordoba and Tucuman. Ferrobaires is a public railway company operating train service throughout the Buenos Aires province such as to Tigre, Argentina.Ports.
The major seaports are Bahia Blanca, Buenos Aires, La Plata, Punta Colorada, and Ushuaia. Most ports service multiple classes of vessels including bulk carriers (dry and liquid), break bulk cargoes (goods loaded individually in bags, boxes, crates, or drums; sometimes palletized), containers, roll-on/roll-off, and passenger ships. Some ports are significant for handling passenger traffic and are listed as cruise or ferry ports. In addition to commercial traffic, many seaports also provide important military infrastructure such as naval bases or dockyards. Main river ports are Arroyo Seco, Rosario, San Lorenzo-San Martin (Parana).Airports.
By 2013 the total amount of Airports was 1,138, by 2017 the total amount of airports with paved runways was 161 and 977 with unpaved runways. By 2015 Argentina had 6 registered air carriers, with an inventory of 407, and annual passenger traffic of 14,245,183, and an annual freight traffic on registered air carriers of 243,772,567 mt-km.Transportation.
Transportation in Argentina can be by trains, tramways, executive long-distance busses, railways, taxis, commuter trains, subways (in Buenos Aires), ferries (Boquebus & others), Remises (private taxi service) and airports. Long-distance busses are how most travelers travel throughout the country, since it’s cheaper than traveling by plane. Local public transport consists of colectivos (also called ‘micros’) older models that take short journeys through a town or city.Distribution of Goods.
Goods transport, national and regional, is dominated by road transport, with a total of 313 million tons of goods transported per year, by rail 25 million tons transited by year and 0.15 million tons by air. International goods transport outside Mercosur is dominated by sea transport, the main ports are Buenos Aires (which constitutes 60% of port traffic) and the port of La Plata. The Uruguay and Parana rivers are main connections with Brazil and in Paraguay.
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Present State of Business Environment 2019
The GDP value of Argentina represents 0.84 percent of the world economy. Argentina has vast natural resources in energy and agriculture. Argentina's historical economic problems with economic growth and institutional obstacles have hampered the possibility of development. The economy of Argentina shrank 5.8% year-on-year in the first quarter of 2019. Urban poverty in Argentina remains high, according to the world bank the incidence of poverty reaches 41% among children aged 0 to 14 years old.
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