Bumper wheat harvest should ignite Argentina economy

A record wheat harvest expected in Argentina this year could arrive just in time to jumpstart the ailing South American economy in the fourth quarter, after growth has been hit by low investment, high inflation and a soy crop devastated by drought. Farmers are rushing to plant wheat in the moist conditions left by rainstorms that helped destroy Argentina’s recently-harvested soy bean crop. Months of dry weather gave way in April to three weeks of storms that helped cut the crop to about 35 million tonnes…

Latam Investor Q3 2018 Report

With 80% of the region’s population going to the polls in 2018, this year was always going to be seminal for Latin America. With elections in Chile, Mexico and Colombia already completed we can now see some outlines appearing on the political map of Latin America for the next few years. Meanwhile, with commodity prices from copper to oil moving upwards, the economic dynamic is also becoming clearer. In Chile and Colombia, right-wing candidates have come back to power. Both are lucky to win an election when…

Argentina’s Stock Market gives a vote of confidence in the economies future

The upgrade from a Frontier Economy to a Emerging one means funds that track the emerging markets index will now be able to invest in foreign-listed shares of Argentine companies. The Global X MSCI Argentina exchange-traded fund, which is composed of that index, was up 1.7% at $28.96 as of 5:20 p.m. local time (2020 GMT). But local stocks, as well as other Argentine assets, were benefiting from improved sentiment. Argentina’s country risk – a measure of the spread between its bond yields and those…

Argentina Wins Upgrade to Emerging Status after nine long years

Argentina won promotion to emerging-market status for the first time in almost a decade, rewarding President Mauricio Macri for his efforts to scrap capital controls and normalize the economy after taking over in 2015 following years of mismanagement. The decision by MSCI Inc., which dropped Argentina to frontier status in 2009, may set the stage for a 20 percent gain in the benchmark equity index, Morgan Stanley says, after a peso rout created one of the world’s worst-performing stock markets in dollar terms.…

💰 Should Investors worry about Argentina’s Dollar Crisis?

The late MIT economist Rüdiger Dornbusch used to tell his students in the 1980s that there are four kinds of countries: rich, poor, Japan, and Argentina. No one frets anymore about Japan buying its way to world domination. But the world is worrying again about Argentina. The country has just suffered another textbook attack on its currency. On April 24, the yield on ten-year US Treasury bonds broke 3% for the first time since 2014. On the same day, investors began dumping Argentine pesos and seeking the security…

Argentina: Sentiment on Argentina is running hot

Sentiment on Argentina is running hot. Really hot. Unfortunately for the optimists, sentiment isn’t the only thing running hot in Argentina. The country is experiencing its worst drought in 30 years – an event that is already causing GDP estimates for this year to get dinged. More on that in a second. But first, let’s look at the positive view: The first of these is that foreign capital is coming back to Argentina. This is certainly true. They further suggest that capitalist president Macri’s…

5 Great Reasons to Do Business in Argentina

As Argentina re-enters the global market, investor interest has surged by people wanting to do business there. The emerging economy has taken great leaps towards reducing their well-known economic problems. There have been numerous government initiatives aimed at improving the economic state of the country and encouraging foreign participation. Some of these government-led initiatives include, but are not limited too: The lifting of foreign-exchange controls. Creation of the Argentinian Simplified Shares Company (S.A.S…

Argentina: Latin America’s Third-Largest Economy

Argentina is a Republic (similar but not the same Constitution to the USA) with 23 provinces and the autonomous city of Buenos Aires ( locally known Capital Federal), being its capital. Buenos Aires has a population size of 3.89 million and a metropolitan population of around 17 million, making it the largest city in the Argentina and fourth largest in the western hemisphere. Because of its beauty and culture, Buenos Aires is often referred to as “the Paris of South America.” In terms of ethnicity, most…

Business optimism in Argentina is the highest in 22 years

86% of Argentine Businesspeople believe that the economy will continue to improve A new poll shows 65% of businessmen felt that the economy will be “moderately to significantly better” in the latter part of the 2017 year, while 21% thought it will be “considerably better”; half of those surveyed say they will increase employment in their own companies. This is good news in an economy that has been struggling to make the necessary cultural and economic changes from years of regressive…

The Kings of soy, maize, meat and milk in Argentina

A review of the major players in Argentine Agriculture. The agricultural sector is one of the most diverse parts of the Argentine economy. The golden years of the landowners and their large estates in the Humid Pampa, some almost as large as small countries of Europe, has been left behind for the most part. There are still some very large farms, ie here is one farm of one million acres. However despite the change of eras, now in the 21st century, some agriculture producers still stand out from the rest as…

Argentina and Brazil will have high rates of growth this year

Expect more good news than bad when it comes to global growth this year, led by recoveries in several of Latin America’s largest economies, a pickup in the U.S., and continued robustness from China and India. The expectation is that 62 economies are slated for an improvement compared with last year, while 33 will see a deterioration, according to an analysis of the latest Bloomberg consensus outlook. Near the top of the list are Argentina and Brazil, both set to shift from contraction to expansion, along…

Argentina’s economic future is reborn

Energías Renovables en Argentina
Argentina at one time was the poster child for foreign direct investment in Latin America. This came to an end after periods of political, economic and social upheaval left Argentina troubled, however, for example with a populist regime in the past decade that intervened in all sectors of the economy, especially imposing huge protectionist taxes on imports and exports. Following the election of President Mauricio Macri’s new government in November 2015, much of that has begun to shift, and Argentina is once…

Argentine organises the largest Business and Investment Forum in its history

image for Argentina 2017
President Macri is fronting a forum to the world’s business elite the countries vision of a modern Argentina Argentina is organising a major business and investment forum next month, September 12th to the 15th, in Buenos Aires where more than 1,500 world business leaders and representatives of government and economic institutions are scheduled to attend the event, probably the largest in recent times in all of Latin America. All of the participants will receive from the president Mauricio Macri administration…

Foreign Investors give Argentina a huge vote of confidence

Foreign Investors give Argentina a huge vote of confidence The most surprising thing about Argentina’s record bond sale this month isn’t that it issued US $16.5 billion of debt while still in default. It’s that the country could have sold even more as foreign Investors give Argentina a huge vote of confidence. The bonds rallied in early trading, signalling strong investor demand and a turnaround in sentiment after Argentina’s US $95 billion default in 2001 set off more than a decade of litigation and…

Don’t Cry for Argentina’s Investors they are doing just fine

  ARGENTINA POSITIVE OUTLOOK IS GAINING TRACTION WITH INVESTORS In the four months since former Buenos Aires Mayor Mauricio Macri was elected president, Argentina has become a lodestone for global investors. They’re anticipating the biggest spurt of growth in Latin America, a corresponding retreat of inflation and the best returns from the continent’s healthiest companies. Argentina Markets often bestow a halo on new governments that fades when promises can’t be kept. Investors in Argentina…
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