Country Profile
From The Report: Argentina 2018
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Today, despite being one of the largest economies in Latin America, Argentina has suffered serious economic crises over the past two decades, which have stymied its growth, constricted foreign direct investment into its productive sectors and limited the country’s ability to harness its vast natural resources. The country’s economy is driven by the oil and gas industry, boasting significant onshore, offshore and shale oil and gas reserves, alongside its agricultural and livestock industries. On the regional and global stage Argentina has a high profile, where it currently chairs the G20 and is an observer member of the Pacific Alliance, while aspiring towards OECD membership. However, with the government having been granted a $50bn bailout from the IMF in June 2018, the spectre of economic crisis and indebtedness looks to have reappeared, just at a time when investors appeared to be showing renewed interest in the country following the election victory of pro-business President Mauricio Macri in October 2015. This chapter contains interviews with President Mauricio Macri; Jorge Faurie, Minister of Foreign Affairs and Worship; Steven Ciobo, Minister for Trade, Tourism and Investment, Australia; and a viewpoint with Luis Alberto Moreno, President, Inter-American Bank of Development.

Articles from this Chapter

Overview

Untapped possibilities: In a land of great diversity and culture, Argentina seeks to unlock the potential of its natural resources
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Argentina is a land of rich cultural and national heritage, and significant geographical diversity, which attracts visitors from around the world. The strategic importance of the country’s capital, Buenos Aires, whose port remains a significant trading centre both regionally and internationally, became the administrative centre of the Viceroyalty of Peru under Spanish rule in the late 18th and early 19th century. Today, despite being one of the largest economies in Latin America, Argentina has…

Interview

Plan of a tax: President Mauricio Macri, on the G20 conference, encouraging investor confidence and progressive reforms
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Mauricio Macri : Interview How is Argentina’s hosting of the G20 conference in 2018 expected to affect the local business climate? MAURICIO MACRI: Our hosting of the G20 is proof that Argentina is integrating into the world in an intelligent way. It is an opportunity for leaders to make agreements that will guide us towards a just and sustainable future. Furthermore, it will help our country take its place in the world, realise its full potential and generate solutions to various global challenges.…

Overview

Road to recovery: As controversy over Argentina’s recourse to the IMF continues, growth indicators are mixed
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The decision by the Argentine government in May 2018 to seek financial support from the IMF was a stark reminder of the early 2000s, from which the country had appeared to have been successfully recovering in recent years. The recourse to the IMF, which granted the country a loan of $50bn the following month, was sparked by a run on the Argentine peso that reduced the value of the currency by about one-fifth. Between 1998 and 2002 Argentina suffered a major economic crisis, and large sections of…

Interview

Trade partners: Jorge Faurie, Minister of Foreign Affairs and Worship, on expectations for the EU-Mercosur agreement
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Interview :Jorge Faurie How will the EU-Mercosur free trade agreement impact commercial relations between both blocs? JORGE FAURIE: There are great expectations for this deal as it is a strategic step forward, and we understand the EU sees it the same way. It would establish a bilateral link that would not only help to stimulate both markets, but also attract investment in technology and innovation. In the current redefinition of global strategy, each country or bloc is seeking more trading…

Interview

Stronger together: Steven Ciobo, Minister for Trade, Tourism and Investment of Australia, on boosting cooperation to unlock economic potential
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Interview :Steven Ciobo What can Argentina learn from Australia about economic reforms and long-term economic success? STEVEN CIOBO: Australia’s economic success story is unprecedented. We have now completed our 27th year of continuous economic growth, which is a world record. Australia navigated the dot-com bust, the 1997-98 Asian financial crisis, the 2008-09 global financial crisis and a transition from the mining investment boom without incurring a recession. There are many similarities…

Analysis

Thinking globally: The administration has overhauled foreign policy to focus on multilateralism and expanded trade
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Under President Mauricio Macri, Argentina’s foreign policy has undergone a fundamental turnaround. Following years of left-populist politics under Néstor Kirchner and Cristina Fernández de Kirchner, who allied with other regional populist governments and often clashed with global powers such as the US and the UK, President Macri has since shifted the country’s foreign policy focus. With economic reform on the top of his agenda, Macri reset relations with the US and the UK upon taking office,…

Viewpoint

Greater trust: Luis Alberto Moreno, President, Inter-American Bank of Development, on strengthening the credibility of public-private alliances through collective action mechanisms
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Among the most important tasks for Latin America and the Caribbean is to achieve greater growth rates, and a fundamental part of this is investing in infrastructure. The most viable way to accomplish this investment is a significant increase in the number of public-private partnerships (PPPs), and this can only be happen if corruption is eradicated from public contracting. Currently, around 2.5% of the region’s GDP is invested in infrastructure development. Overall, the region should invest at…