Business in Argentina Buenos Aires. Economy Foreign Trade Exports Imports

Summary

Argentina is rich in natural resources with a geological and climatic situation particularly suitable for developing forestry, agriculture, mining and fisheries. It also boasts of large petroleum, gas and uranium reserves.

Argentina is famous for its agricultural production. With over 54 million head of cattle, Argentina’s beef is renowned around the world. Annual production of cereals and oilseeds exceeds 70 million tones, which makes Argentina one of the main exporters of these products and their derivatives. Mendoza on the western border is the center of wine production. Argentina is the worlds fifth-largest producer of wine.

Gas and Oil are important resources being increasingly exported to the neighboring countries and to the world market. Together with mining products they make out for 15% of total exports.

The industrial sector includes manufacturing and construction. Among Argentina’s manufactured goods are processed food, textiles, clothing, metallic and non-metallic mineral products, wood products, paper, pharmaceutical products, chemicals and petrochemical products, aluminum, steel, cars, electrical machinery and appliances, machine tools, turbines, cranes, agriculture machinery, and space and nuclear products. Construction, engineering and consultancy activities have developed to an important stage, extending to the Latin-American market and other countries.

Buenos Aires is the capital and largest city of Argentina. It is located on the southern shore of the Río de la Plata. As of the census of 2001, there are 12.4 million people residing in the city and residential zones, making Buenos Aires the most populated city in Argentina. Buenos Aires is the financial, industrial, commercial, and cultural hub of Argentina.

Since the new economic model has come into effect, based on a competitive and stable exchange rate, surplus in public and foreign trade accounts and a careful management of the monetary policy, Argentine economy has shown a strong dynamism.

Argentina's economy is 55.1 percent free, according to 2008 assessment, which makes it the world's 108th freest economy. Its overall score is essentially unchanged from last year. Argentina is ranked 23rd out of 29 countries in the Americas, and its overall score is below the regional average.

Compared to the typical country, Argentina has only one economically favorable institution: relatively small government in terms of expenditures. Most advanced economies are cutting their corporate tax rates, but Argentina's top corporate and income tax rates are 35 percent. Yet tax revenue as a percentage of GDP is low, as is expenditure, as a result of tax avoidance and evasion.

Property rights, labor freedom, and freedom from corruption are low, but financial freedom is especially problematic. The foreign debt crisis remains unresolved, and local capital markets are not healthy. Political interference with an inefficient judiciary hinders foreign investment, and popular and official obstructions of due process make international courts preferable to Argentine courts. (Source: Heritage).

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