Argentina’s Path to Recovery will be Global
Argentina has opened its doors again to international investors and is making a successful return to global markets.
Against a backdrop of increasing uncertainty in the once safe-havens of wealthy nations, investors everywhere are searching for growth. This makes Argentina’s re-entry onto the global stage an opportunity already gaining traction and recognition.
Recently, Argentina was able to successfully issue a $16.5 billion bond– the largest ever for an emerging market. In fact, demand was so strong by the international investment community that the size of the deal was increased at a lower yield.
This new confidence stems from a range of policies introduced by President Mauricio Macri: the removal of capital controls and repatriation restrictions, the cutting of export taxes, and free floating exchange rates.
This new direction is just the start of an economic turnaround in Argentina which aims to provide inclusive national growth through more international trade, investment and, crucially, closer cooperation with the global community – given that improving political stability and fiscal credibility unlock opportunities for international investment.
To showcase these exciting new opportunities to the world, Buenos Aires will host over 1500 global businessmen, investors and political leaders at the Argentina Business & Investment Forum from September 12 to 15, 2016.
Confirmed speakers already include leading figures from global business and finance including; Bob Dudley, Group Chief Executive of BP; Maurice Raymond ‘Hank’ Greenberg, CEO of C.V. Starr & Co.; Donna Hrinak, President, Latin America of Boeing; Joe Kaeser CEO of Siemens; Muhtar Kent, CEO of The Coca-Cola Company; Miguel Kozuszok, President, Latin America of Unilever; Andrew Liveris, Chairman & CEO of Dow Chemical, Peter Orszag; Vice Chairman of Lazard; and Martin Sorrell, CEO of WPP.
The Argentina Forum will put the country back on the global investment map and highlight billions of dollars’ worth of valuable opportunities. Right now in Argentina there are up to $20bnof investment opportunities for hydro/thermal power plants and a further US$15bnfor 10GW of renewable energy projects. We have also identified up to $20bn for oil & gas fields and infrastructure, and $25nn for roads and highways and $15bn for 10,000 km of railway freight lines.
Argentina is built on strong economic fundamentals providing the framework for these new opportunities. Our workforce is young, educated and dynamic, with increasingly strong purchasing power. Approximately 60 percent of our 41 million strong population is under 35 years old, and we are the third largest economy in Latin America after Brazil and Mexico, with the second highest GDP per capita in the region in purchasing power parity terms.
The Argentina Business & Investment Forum will show the world that we are open for business again. Most importantly, it will rebuild trust between Argentina and the global investment community. Rebuilding this trust will both help us build roads, train lines, houses, and a brighter future for Argentina – and provide greater opportunity for both the region and investors.
Juan Procaccini is president of the Argentina Investment and Trade Promotion Agency.