After an intense crisis, Argentine dairy farms embrace increased profitability

The sector, it is recovering after a sharp drop in production in June, and prices are now “reasonably good.” Recovery is underway. After a deep, productive crisis caused by the drought, the winds of change are blowing for the Argentine dairy industry. After several months of negative dairy activity numbers, starting in June, producers expect a slight improvement. Last year, it was worth remembering that dozens of producers forcibly sold dairy herds, even in full production, in a difficult situation…

Argentina now has several options for those seeking home mortgages at attractive rates

Who can access mortgage credit, and what is the operation for purchasing homes through the new banking options (Andina)? The reintroduction of mortgage loans in Argentina revolutionized the real estate market. There are already 13 banks that offer them, including public entities such as Nación and Ciudad, private entities such as Hipotecario (the first to launch them) and Supervielle, and provincial entities such as those of Córdoba and Corrientes, among others. The schemes tied to the UVA usually propose…

Reasons why we are on the cusp of a commodity super-cycle affecting South America

The following two decades are likely to be a series of supply squeezes for a variety of reasons As 2024 unfolds, the surge in commodity prices has been nothing short of spectacular, with sectors such as metals, energy, and agriculture all registering significant gains. This trend is not merely coincidental but indicative of a burgeoning commodity super-cycle driven by three key factors: What drives commodity super-cycles? Historically, commodity super-cycles have been triggered by periods of intense industrialisation…

BBVA: Argentina Economic Outlook. December 2023

Javier Milei will be Argentina’s new president. He takes office to correct strong imbalances in the fiscal, monetary and exchange rate fronts. Adjusting spending and changes in relative prices will lead to an acceleration of inflation and further contraction of GDP in the short term. Key points Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay,…

With the change in political direction, there is a boom in Buenos Aires Residential Sales with a 53% increase

The sales registered in October are positioned as the highest in the last six years. November is expected to be even higher. October was a month full of uncertainty and expectations due to the elections. But far from applying a wait-and-see policy and waiting to define who would be the next president of Argentina to try to predict how the market could evolve, the people kept the real estate market more active than ever. So much so that in October, 4,559 properties were registered, a record that can be read…

Update on Argentina’s foreign farmland ownership

The Rural Land Law (Law 26,737) and the Border Security Zone Law set out certain limits on foreign ownership of rural lands that can restrict investment in the agribusiness industry.  The Rural Lands Law limits the ownership and possession of rural land by foreign individuals or companies, irrespective of the use to which the land might be dedicated. Foreign persons must receive authorisation from the National Registry of Rural Lands to buy rural land. “Rural land” includes any land outside…

Understanding the upcoming Argentine Presidential Elections

This year, Argentina will elect a new president, vice president, and members of Congress.  Understanding the country’s electoral process and the concerns that drive voter choices is crucial.  Here is what you should know about the upcoming Argentine presidential elections. Overview of the Electoral Process 2023 Electoral Timeline Key Voter Issues 2023 promises to force the candidates and the electorate to evaluate various substantive issues conspicuously absent from prior campaigns. One such issue is…

South American three-year drought partly driven by ‘triple-dip’ La Niña

Southern Brazil, Paraguay and northeastern Argentina are still experiencing a severe drought affecting soybean and maize production. Brazil, Argentina and Paraguay, South America’s three major agricultural producers, are experiencing a prolonged drought and low water levels in their main rivers. This severely impacts harvests and river transport of important summer crops, with maize and soybeans the main casualties.  Although conditions may improve, the grain harvests of 2022 and 2023 could result in…

Argentina’s economy minister quits over inflation crisis

Argentina’s economy minister, Martin Guzman, the architect of a recent major debt deal with the International Monetary Fund, resigned on Saturday (Sunday AEST) as deep splits emerged in the ruling coalition over how to handle mounting economic crises. Mr Guzman, a minister since late 2019 and a close ally of President Alberto Fernandez, posted a letter on Twitter announcing his decision, adding he maintained “confidence in my vision of the path Argentina should follow”. The centre-left president is facing…

Is Argentina a risk worth taking ?

  Argentina was a first world country at the beginning of the twentieth century, during the worldwide agricultural commodities boom but sadly, lost its way with social and economic policies, more associated with the fascist governments of Europe, from the 1930s under a movement called Peronism. Peronism is what could be described as a movement that is “a riddle, wrapped in a mystery, inside an enigma”, in that it is almost impossible to define in conventional politics. At times it swings to leftist…

Buying real estate in Argentina which is in another crisis

The pandemic has further deepened Argentina’s already serious economic woes. A bad situation has become even worse. But is it a good country to invest in? It is likely the current government will lead Argentina into a serious default just as the same administration has done in the past. Printing pesos to pay off USD debt just causes inflation. Argentina today is not-so-quietly heading towards the famous fiscal cliff and a very hard landing. ‘Argentina looks absolutely miserable’. However, if you want…

Latin America Business: 2021 Growth Predictions Jump

In a highly positive sign for Latin America business and investment, the UN’s Economic Commission for Latin America and the Caribbean (ECLAC) has significantly raised its predictions for growth in the region during 2021, offering a strong indication of economic reactivation in the wake of the global pandemic. According to a newly released report from ECLAC, gross domestic product (GDP) in Latin America and the Caribbean is now expected to grow 5.9% overall, having been predicted to grow 5.2% in…

Buenos Aires Industrial Market Report 2021

MARKET OUTLOOK: The first semester of 2021 started with positive data for the logistics market in Buenos Aires, with a vacancy rate that went down to14.3%, that is to say 4.47 points lower than the previous semester, which provoked a rupture in the upward trend that had beenmaintained since the end of 2018.This way, the recovery towards the second semester of the year begins, based in the growth of e-commerce in the pandemic scenarioand also in the change of consumption habits, which have turned to digital…

The current President pitches Argentina to top global investment funds

President Alberto Fernández pitched Argentina’s growth potential to a host of top global investment funds on Tuesday, as he asked them to back the country and its bid for economic recovery. According to the reports, much of the call – which was organised by the CEO of the Russian Direct Investment Fund, Kirill Dmitriev – was devoted to Vaca Muerta, with the president describing the shale basin as “a fundamental pillar” for Argentina’s economic recovery. Representatives from private and…

Optimistic forecast in coming months due to increased Argentina’s economic activity

Argentina’s economic activity was down 10% during 2020 after falling 2.2% in December versus a year earlier, but better than the average fall analysts forecasted and that the initial government projections. Argentina’s economy, in recession since 2018, and stagflation since 2012, was hit hard by the COVID-19 pandemic and a lengthy lockdown in the country to rein in new cases, though there have been signs of a revival in recent months as restrictions have been eased. Economy activity was up 0.9% in December…
Real Estate and Investment News from South America
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