Argentina Market

Argentina is rich in natural resources and also has a large and profitable agricultural sector. For all its potential, the economy has been historically blighted by high inflation and a massive foreign debt.

 

The Menem government of the mid 1990s made a reasonable attempt to tackle these through privatisation, free market economics and cuts in public spending. In addition, the value of the Peso was fixed to the US Dollar. The immediate results were reductions in the national debt and the inflation rate. However, the policy of Peso-Dollar parity eventually led to a sharp fall in exports and government tax revenues, as well as a large increase in government debt.

 

With external debt topping US$130 billion in 2001, Argentina was on the point of defaulting on its overseas debts, potentially leading to a complete economic meltdown. At the end of the year, the government was forced to devalue the Peso and freeze bank accounts.

 

In the intervening years, the government has taken a number of steps to restructure its economy and in 2005 President Kirchner made the bold move of paying off the country's debt to the IMF. Despite the severe economic crisis, Argentina has battled back and industry is buoyant. Although the GDP growth has hovered around 8% in recent years, economic forecasts predict that will half in 2009, with inflation rates set to rise.

 

Business cards are usually given and businesspeople expect to deal with someone of equal status. Personal contacts are highly valued in business negotiations. Meetings commonly start 10 or 15 minutes late. Literature is in Spanish, although many Argentine businesspeople speak English as a second language.

 

Office hours: Mon-Fri 0900-1200 and 1400-1900, although many workers start late and finish late.

 

Business Contacts

Cámara Argentina de Comercio (Chamber of Commerce)

Avenida Leandro N. Alem 36, C1003AAN Buenos Aires, Argentina

Tel: (011) 5300 9000.