Transcript Rafael`s Presentation - Dublin Chamber of Commerce

Argentina: a strategic destination for
productive investment
Embassy of the Argentine Republic in Ireland
Dublin, 16 September 2015
Why invest in Argentina?
1. Sustainable economic growth
2. Attractive business profitability
3. Strength to face the global crisis
4. Strategic location
5. Openness to the world
6. Diversified economy
7. Abundant and diverse natural resources
8. Skilled and highly creative workforce
9. High levels of scientific, technological and productive
innovation
10. Modern infrastructure and high-quality connectivity
1
Sustainable economic growth
A dynamic economic model based on social inclusion
.
Argentina boasts the highest
economic growth in the region
during last decade
 Economic growth: leader in Latin America for the past
decade.
 Sustainable macroeconomy: sustained external surplus.
Average growth rate of GDP (2003-2012)
at an average rate of 7% per year in real terms since 2003.
7.2%
3.8% 4.1%
1.3%1.3%
Source: Ministry of Foreign Affairs and
Worship (MREC) based on IMF
G7
 Dynamic domestic market: private consumption has grown
8%
7%
6%
5%
4%
3%
2%
1%
0%
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 Record-high exports close to US$ 100 billion for goods and
services in 2012.
1
Sustainable economic growth
A dynamic economic model based on social inclusion
Argentina ranks as a very high
human development country
(UNDP)
Economic policies give priority to socioeconomic
integration and social inclusion as primary goals.
Five million new jobs created; a decreased in
unemployment levels from 21.5% in 2002 to 6.6% in 2015.
Improved income distribution: the Gini ratio reduced
from 0.53 in 2003 to 0.42 in 2013.
GDP per capita (PPP)
In thousands of current international US$ (2012)
18.4
18.1
15.9
Inclusion of the most vulnerable age groups into social
15.3
13.6
security coverage; substantial reduction in poverty and
11.9
indigence levels.
10.8 10.7
10.1
6.1
Ranked as a Very High Human Development country in
5.1
Source: MREC based on IMF
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the United Nations 2014 Human Development Index.
2
Attractive business profitability
Productive investment delivering high returns
High profitability in a wide range of productive sectors.
More than 2,000 multinational companies operating in diverse sectors
Profitability as a percentage of assets
10%
8%
Aut
om
otiv
e
Win
e
11%
Plas
tics
d
11%
Foo
12%
iles
13%
Tex
t
14%
ery
17%
Ma
chin
17%
Adv
erti
sing
18%
rvic
es
Hou
se h
old
app
lia..
.
Che
m ic
al in
d us
try
Me
dica
l ins
trum
e nt
s
18%
IT s
e
nes
19%
Me
dici
rag
es
22%
Bev
e
25%
20%
15%
10%
5%
0%
Source: MREC based on Argentina’s Federal Administration of Public Revenues (AFIP)
Argentina offers
profitable
opportunities in
a wide range of
sectors
3
Strength to face the global crisis
Effective public policies aimed at fostering demand
Public debt as a % of GDP and variation in percentage points
(2007-2012)
+41%
Argentina is pursuing
its debt reduction goal
despite the global
crisis
+28%
-20%
+4%
European Union
United States
2007 (pre-crisis scenario)
Source: MREC based on IMF
Latin America
Argentina
2012 (current scenario)
4
Strategic location
Strong ties with Latin America
Argentina is part of a dynamic
region strengthening its ties
Intra-MERCOSUR exports and MERCOSUR exports to the
world - 2002=100 index - In millions of US$ - Annual average
growth rate 2002-2012
600
+18.6%
Intra MERCOSUR
 Strategic player within the main food
exporting region in the world.
500
Extra MERCOSUR
400
 Located in a region endowed with
resources to meet current and future local
and global demands.
+13.6%
300
200
 Share of world resources: 27% of potable
water; 12% of arable lands; 21% of native
forests;
and
sufficient
hydrocarbon
resources to satisfy demand for more than
100 years.
 Economic growth, an expanding domestic
market and a dynamic middle-class.
100
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: MREC based on the Center for International Economy (CEI),
INDEC and IMF
4
Strategic location
Strong ties with Latin America
 Full MERCOSUR member, together with Brazil,
Paraguay, Uruguay and Venezuela:
 Preferential access (0% tariff) to a regional
market of 300 million inhabitants and aggregate
GDP of US$ 3.6 trillion.
 Great
industrial
opportunities
to
specialization.
Member
countries
Associated countries
Associated countries
(under ratification process)
complementarity
and
deepen
productive
 Member of UNASUR (Union of South American
Nations); ALADI (Latin American Integration
Association); and ECLAC (Commission for Latin
America and the Caribbean).
5
Openness to the world
Global economic integration
 G-20 Member.
 Active presence in several international organizations, including the
World Trade Organization, G77+China, United Nations, UNCTAD
and FAO, among others.
Argentina expands its exports in all
economic sectors
Exports by major items
In millions of US$ (2002-2012)
30,000
 Diversified export basket with shipments to more than 150
destinations.
25,000
20,000
 Trade growth with the rest of the world (2003-2012) of 14.6% per
year.
15,000
10,000
5,000
 One of the countries with the least restrictive FDI legislation in the
world: 11th worldwide, 2nd in G-20 and 2nd in Latin America (OECD).
 Open multicultural society without ethnic or religious conflicts.
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Primary products
Agricultural manufactures
Industrial manufactures
Fuels and energy
Source: MREC based on CEI
6
Diversified economy
Investment opportunities in every productive sector of the economy
- Diversified productive matrix with investment
opportunities in every sector: agroindustry, wine industry,
chemicals and pharmaceuticals, capital goods, durable
consumer goods, automotive and auto parts.
- Great technological development in the agrifood value
chain, including innovation in seeding, direct sowing,
agricultural machinery production, silo bag storage and
vaccine development for animal.
Argentina has a diversified
economic structure
Gross added value per sector
Average growth rate per year (2003- 2012)
6.9%
GDP (all sectors)
- Leading country in the international food market, with
exports exceeding US$ 25 billion (2012). One of the world’s
main exporters of oils, cereals, meat, fruit, honey and wine.
10.9%
Transport, storage & communications
9.4%
Construction
8.8%
Wholesale and retail trade and repairs
6.6%
Manufacturing industries
- Accelerated development of renewable energies,
biotechnology, software and creative industries.
6.4%
Other service sectors(*)
6.1%
Hotels and restaurants
4.7%
Electricity, gas and water
4.2%
Real estate, business and renting
- Main tourism destination in South America, with almost six
Agriculture, livestock, hunting, forestry, fishing, and
million tourist per year.
mining and quarrying
1.0%
*Including: Financial
intermediation; Public
Administration and Defense;
Teaching, health and social
work; Other community. Social,
personal and domestic services.
Abundant and diverse natural resources
Rich resources available for sustainable development
Second largest country in Latin America; 8th in the
world: 3.8 million km2.
Highest agricultural productivity levels in the world.
Vast extension of fertile land for agriculture: 9th
largest extension of agricultural area in the world
with 147 million hectares of arable lands (FAO).
Ample forest resources: more than 33 million
hectares of native forests and 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.
4,700 km coast along the Atlantic Ocean with rich
fisheries.
7
7
Abundant and diverse natural resources
Rich resources available for sustainable development
Exports – Main products
 Vast oil and gas resources with exploration and exploitation
opportunities.
 Ranked 2nd and 4th worldwide in shale gas and shale oil
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).
Position
Product
1st
Concentrated lemon juice, peanut
oil, soybean oil, soybean cakes,
yerba mate
2nd
Corn, honey, sunflower oil,
prepared peanuts, shelled
peanuts, peanut cakes, sorghum,
safflower oil.
3rd
Grape juice, cotton oil, non-pitted
olives, birdseed, dried plums,
whole powdered milk, wheat
meal, soy.
Source: MREC based on FAO
8
Skilled and highly creative workforce
Argentine talent
Argentina bets on
education
 More than 99,000 graduates from higher education
programs and almost 11,000 postgraduate students from
115 universities across the country enter the labor
market each year.
 Economically active population (EAP) with the highest
education level in Latin America.
Public spending on education to GDP - in %
(2011)
8%
6.0%
6%
5.6%
5.3%
4.5%
4.2%
4.1%
Colombia
Chile
Paraguay
4%
 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).
4.8%
2%
0%
Argentina
Brazil
Mexico
Latin
America
and the
Caribbean
 The most dynamic work productivity in the region
in recent years (ECLAC).
Argentina’s workers have the
highest education level in the
region
Source: MREC based on ECLAC
High level of scientific, technological and productive innovation
Toward greater competitiveness and higher added value
- Creation of the Ministry of Science, Technology and Productive
Innovation in 2007 .
- Scientific and Technological Pole (opened in 2011) recognized for
its contribution to scientific development, production and
dissemination of knowledge.
- Fifty five per cent increase in the number of R&D professionals
over the period 2003-2011.
- About 500 researchers and 1,000 research fellows join the
National Technical and Scientific Research Council (CONICET) /
year
- Largest number of nuclear plants in Latin America: Atucha I, El Embalse
and Atucha II.
- Development of aerospace projects led by INVAP, a public company of
world renown for satellite development.
9
Modern infrastructure and high-quality connectivity
A strong network in expansion
Public investment at a historic high (going from 0.7% of total public
spending in 2002 to 3.5% in 2011).
Well-developed transport and infrastructure system: 40.000
kilometers of national roads and 196.000 kilometers of provincial
roads; one of the longest rail road networks in the world (36,000
kilometers); 43 ports and 54 airports.
High rates of internet penetration into companies and homes.
2nd country in Latin America with the highest number of mobile
lines per 100 inhabitants (World Bank, 2011).
10
Thank you!
Embassy of the Argentine Republic
15, Ailesbury Drive – Ballsbridge (D4)
(01) 269-1546
[email protected]