International Market Development

International market development | Comprehensive analysis of Argentina's economy and market conditions

Author : Bozhou Marine

Update time : 2020-12-29 14:46:44

In this article, we mainly introduce the basic situation of the Argentine market. Including: geographic location, major cities, population conditions, ethnic groups, major festivals, natural resources, major industries, infrastructure, GDP, foreign exchange reserves, employment, prices, taxes, etc.

  Introduction

The Republic of Argentina (English: the Republic of Argentina), referred to as Argentina (Argentina), is a presidential federal republic composed of 23 provinces and the federal capital (Buenos Aires). It is located in the southeast of South America and borders on the east. The Atlantic Ocean faces Antarctica across the sea to the south, Chile to the west, Bolivia and Paraguay to the north, and Uruguay and Brazil to the northeast.

Argentina is a member of the League of South American Nations, a member of the G20, and the third largest economy in Latin America. Argentina is one of the developing countries with strong overall national strength in the world. Argentina is also one of the world's leading producers and exporters of food and meat.

Argentina benefits from abundant natural resources, highly educated people, open policies and a diverse economy. Therefore, Argentina has a large middle class relative to other Latin American countries.

  Capital

Buenos Aires (Buenos Aires, referred to as BA, often referred to as Buenos and Buenos by Chinese) is the capital and largest city of Argentina. It is located on the south bank of the La Plata River, the southeast bank of South America, and the opposite bank. Uruguay (Oriental).

As of 2012, the Buenos Aires metropolitan area has a population of 12.8 million, making it the second largest metropolitan area in South America, second to the greater São Paulo metropolitan area. Buenos Aires is not only the political center of Argentina, but also the economic, technological, cultural and transportation center. The city has more than 80,000 industrial enterprises, and the total industrial output value accounts for two-thirds of Argentina's. It occupies a pivotal position in the national economy. Enjoy the reputation of "Paris of South America".

  Main City

Buenos Aires

The city of Buenos Aires is the seat of the capital of Argentina. The municipal government enjoys a high degree of autonomy, has independent legislative and judicial powers, and its mayor is directly elected by the citizens. Buenos Aires is the largest city in Argentina and the second largest city in South America (after Sao Paulo). The city is located in the eastern part of the country, facing the estuary of the La Plata River in the east. The city covers an area of 200 square kilometers and has a population of 3 million. It is usually collectively called "Dabu City" with the surrounding 19 cities. It has a radius of 3800 square kilometers and has 13 million residents. It accounts for 35% of the country's population, and its industrial output value accounts for 2/3 of the country.

Buenos Aires - Photo | Google

Córdoba

The capital of the province of Cordoba. With approximately 1.3 million inhabitants, it is the second largest city in Argentina, second only to the capital, Buenos Aires. Located at the eastern foot of the Cordoba Mountains, on the banks of the Primero River, the climate is mild, with an average temperature of 8ºC in winter and 25 ºC in summer. It serves as a hub for inland and coastal transportation, and is an important railway and highway transportation hub in central Argentina. Collecting and distributing wheat, cattle, timber and mineral products in irrigated agricultural areas and mining areas nearby. There is an international airport in the southeast of the city.

Rosario

It is located in the province of Santa Fe, and has one third of the population of the province, with about 1 million residents, most of whom are descended from Italy and Hispanics. Located on the west bank of the lower reaches of the Paraná River in eastern Argentina, it is an important river port in the southeast of Santa Fe Province and on the Paraná River. The climate is mild and humid, with an average temperature of 10°C in winter and 26°C in summer. It is an important industrial city with advanced food processing, leather making, paper making and machinery industries. The city has a well-developed road and rail network connected to all parts of Argentina. Agriculture in the surrounding area is developed. Most of the industries are based on local raw materials, including sugar, flour, meat processing and cold storage, leather making, etc., in addition to metallurgy, steel, oil refining, chemicals, machinery and other industries. In addition, the city’s labor training level is comparable to other major developed countries in the world, especially in terms of technical and professional levels.

La Plata

It is the capital of Buenos Aires, the largest province in the country, with a population of about 600,000. On the south bank of the La Plata Estuary, it is 56 kilometers northwest of the capital. The climate is mild, with an average temperature of 9°C in winter and 21°C in summer. In 1882, the town of Ensenada was used as the foundation and the city was elected as the provincial capital. The city has a well-equipped port, which is the main export port of agricultural and livestock products in the Pampas area, and its throughput ranks second in the country. The industry is dominated by meat processing, flour and petroleum refining.

La Plata- Photo | Google

Mar del Plata

It means "Silver Sea" and is located 400 kilometers south of Buenos Aires. It is a seaside city on the Atlantic coast. It is known as the "Pearl of the Atlantic" and is the preferred resort for Argentines. The city’s unique natural scenery, its diverse modern infrastructure and hospitable residents have become an important condition for the development of the city’s tourism industry. The city has a population of about 600,000, and a coastline of 47 kilometers. The climate is mild oceanic, with an average temperature of 8°C in winter and 20°C in summer.

Mendoza

The historic city of Argentina, the capital of the province of the same name [Provincia de Mendoza], is located in the heart of the Cuyo region [Cuyo], which is famous for winemaking. The city is bordered by the Andes branch (Sierra de los Paramillos) in the west, built on the alluvial valley of the Mendoza River. The city runs from No. 40 and No. 7 from north to south and east to west respectively. The road passes through. The urban center area occupies approximately 150 blocks, including residential areas, commercial and financial centers, and the floating population of the city far exceeds its permanent residents. The city has a population of about 130,000 and has a dry climate with an average temperature of 8°C in winter and 25°C in summer.

Jet Lag

China is 11 hours earlier than Argentina in summer and 12 hours earlier than Argentina in winter.

Population and Ethnicity

45.377 million (2020). Whites and Indo-European mixed races account for 95%, and whites are mostly of Italian and Spanish descent. The Indian population is 600,300, of which the most populous minority is the Mapuche.

Tourist in Argentina - Photo | Google

Language

The official language is Spanish.

Main Holiday

New Year's Day: January 1st
Falklands War Veterans Day: April 2nd
Saints Thursday: April 13th
International Labor Day: May 1st
National Day (May Revolution Day): May 25th
National Flag Festival: June 20th
Independence Day: July 9th
Saint Martin's death anniversary: August 17th
National Day: October 12th
Immaculate Conception Day: December 8th
Christmas: December 25th

Argentina's Women Football Team - Photo | Google

  Natural Resources

Rich in mineral resources, it is one of the major mining countries in Latin America. The main mineral resources include oil, natural gas, copper, gold, uranium, lead, zinc, borate, clay, etc., most of which are located near the Andes on the border with Chile and Bolivia. However, the level of mineral development is low, and it is estimated that about 75% of the resources have not yet been explored and developed. Proved reserves: 394 million cubic meters of oil, 332.511 billion cubic meters of natural gas, 22.71 trillion cubic meters of recoverable shale gas, 27 billion barrels of recoverable shale oil, 825 million tons of coal, 300 million tons of iron, and uranium 7080 tons. Rich in water power and fishery resources. The forest area is 1.253 million square kilometers, and the forest coverage rate is 45.06%.

  Main Industry

Industry

Manufacturing is the largest single sector of the country’s economy, accounting for 19% of GDP, and it is compatible with agriculture. Based on the food and textile industries established in the first half of the 20th century, Argentina has formed a relatively complete industrial system. The leading industries are the food and beverage processing industry, motor vehicle and parts manufacturing, oil refining and biodiesel industry, chemical and pharmaceutical industries, steel and aluminum smelting, industrial and agricultural machinery manufacturing, as well as electronic components and household appliances manufacturing. Kitchen appliances and mobile phones are very important for home appliance manufacturing.

Argentina's industry is relatively developed, mainly including steel, automobiles, petroleum, chemicals, textiles, machinery, food processing, etc., with a complete range of categories. The geographical distribution of industries is uneven, mainly in the provinces of Buenos Aires and Córdoba, and the industrial base of the inland provinces is weak. The level of nuclear industry development ranks among the top in Latin America, and now has three nuclear power plants in operation. The fourth nuclear power plant is under preparation. The food processing industry is more advanced, mainly including meat processing, dairy products, grain processing, fruit processing, wine making and other industries.

Agriculture, Animal Husbandry and Fish Industry

Argentina is an important producer and exporter of food and meat in the world with its developed agriculture and animal husbandry. It is known as the "World's Granary and Meat Depot". Most parts of the country have fertile soil and mild climate, suitable for the development of agriculture and animal husbandry. The Pampas grasslands in the east and central are famous agricultural and pastoral areas. The country's arable land and perennial crops use 27.2 million hectares, accounting for 9.8% of the country's land area. The long-term pasture area is 142.1 million hectares, accounting for 51.2% of the country's land area. The irrigated area is 1.69 million hectares, accounting for 6.8% of the arable land area. The agricultural population is 4,287,800, accounting for 10.7% of the total population (2010). The per capita arable land area is 0.77 hectares, ranking among the top in the world.

Argentina is also the world's largest producer of yerba mate. In 2016, 690,000 tons of yerba mate were produced, accounting for more than half of the global production.

Argentina has a long history of animal husbandry, and both the breeds of livestock and the level of animal husbandry occupy an advanced position in the world. Animal husbandry accounts for 40% of the total output value of agriculture and animal husbandry. 80% of the country’s livestock are concentrated in the Pampas Prairie, mainly cattle and sheep. A is a vaccinated non-foot-and-mouth disease area and a non-mad cow disease area. The production, export and consumption of beef rank among the top in the world. In 2014, the national cattle inventory was 51.647 million heads, the beef output was 2.69 million tons, and the export volume was 193,000 tons.

Argentina is rich in fishery resources. 60% of fishery production is in the south and nearly 50% is concentrated in the port of Mar del Plata. The main fishery products are cod, squid and prawns. In 2017, the fishing volume was 700,300 tons, a year-on-year decrease of 8.81%; among them, 466,000 tons were exported, and the export value was 1.488 billion US dollars, an increase of -0.3% and 8.1% respectively.

  Infrastructure

Argentina's transportation is the most developed among the Latin American countries. Roads, railways, aviation and shipping are all centered on the capital, radiating outwards, forming a fan-shaped transportation network. Domestic transportation is mainly land transportation, and 90% of foreign trade goods are transported by water. In the 1990s, the Algerian government privatized all the transportation services.

Railway

The total length is 34,059 kilometers, the longest in Latin America. However, the railway sector has been operating poorly for a long time, losing money for years, and lack of investment. Many equipment and two-thirds of the lines are aging, and most of the road sections have been suspended. At present, the government raises funds to build highways, railways, energy and other projects through government and social capital cooperation, vigorously promotes the "railway revival" plan, and focuses on repairing and rebuilding old freight railway lines. The capital, Buenos Aires, is the first South American city to build a subway. The subway network is developed, with a total of 7 lines and a total length of 68.7 kilometers.

Highway

The total mileage exceeds 500,000 kilometers. In 2011, the total length of national highways was 39,518 kilometers, and the proportion of paved roads was 89.11%. The central government spent 12.741 billion pesos on road infrastructure that year, an increase of 38.06% over the same period last year. In 2012, national highway toll stations passed 150 million vehicles and charged 520 million pesos. In 2012, the number of new cars registered was 845,400, of which 353,800 were domestic cars and 491,600 were imported cars. In 2016, 472,800 vehicles were produced.

Water Transport

There are 38 seaports and 25 inland river ports nationwide. In 2010, the port throughput was approximately 140 million tons. Important ports include Buenos Aires, Blanca and Rosario. Paraguay-Parana River is the main inland river route of Azerbaijan, with a total length of 3302 kilometers.

Air Transport

There are 53 airports nationwide. There are daily flights to and from provincial capitals, major cities and important tourist spots, and there are more than 50 international routes. In 2014, the passenger volume of domestic routes was 9.100 million, the passenger volume of international routes was 11.745 million, and the cargo volume was 238,000 tons. The capital Ezeiza (Ezeiza) International Airport is the country's largest airport. Aerolíneas Argentinas is the largest airline in Argentina. It was acquired by a Spanish company in 1991 and re-nationalized by the government of Argentina in July 2008.

Three consecutive years of negative economic growth

According to official information published by Argentina, its economy in 2019 has not yet emerged from the financial crisis of 2018, and still maintains a negative growth-compared with the previous year, after excluding the price factor, it actually fell by 2.2% year-on-year.

Argentina GDP growth rate trend graph over the years | TRADING ECONOMICS

In 2019, Argentina completed a nominal GDP of approximately 21,650,351 million pesos, which is 448.783 billion U.S. dollars at the average exchange rate with the U.S. dollar. Compared with the approximately 520 billion U.S. dollars in the previous year, the U.S. dollar has fallen by more than 13% in nominal terms.

According to the International Monetary Fund (IMF) World Economic Outlook Report, Argentina’s GDP will fall by 11.8% this year instead of the 9.9% expected in the middle of the year. The Argentine economy will suffer its biggest decline since 2002.

Foreign exchange reserves are in a hurry

Argentina's foreign exchange reserves trends over the years | TRADING ECONOMICS

According to data from the National Bureau of Statistics and Census of Argentina, as of the end of 2019, Argentina’s foreign debt reached 277.648 billion US dollars, of which about 62% of Argentina’s foreign debt belonged to the government, about 26% belonged to non-financial institutions or enterprises, and about 9% belonged to the central bank. Argentina’s foreign exchange reserves were only US$44.848 billion in 2015, that is, the ratio of foreign debt to foreign exchange reserves was 6.18 times, which was once again much higher than 4.2 times in 2018. This value has far exceeded the international alert standard.

Unemployment rate hits record highs repeatedly

Argentina's unemployment rate trend graph over the years | TRADING ECONOMICS

According to a report released by the National Bureau of Statistics of Argentina this Thursday, the unemployment rate in the third quarter of this year accounted for 11.7% of the economically active population, 2% higher than the same period last year. In this case, there were 1.4 million unemployed people looking for work in the third quarter of this year.

The report points out that the group most affected by unemployment is women between the ages of 30 and 64. The unemployment rate of this group of people has reached 28.6%; the most severely unemployed area is the Dabu City area, which has an unemployment rate of 13.8%. .

In the second quarter of this year, the unemployed population in Argentina increased to 2.3 million, and the unemployment rate soared to 13.1%, an increase of 3 percentage points from the first quarter and the highest record in nearly 16 years.

Prices continue to rise, and the inflation rate hits a record high

Argentina Consumer Price Index CPI Trends over the Years | TRADING ECONOMICS

Argentina's inflation rate trend chart over the years | TRADING ECONOMICS

Argentina’s cumulative inflation rate for the entire year of 2019 reached 53.8%, the highest in the past 28 years. The areas with the highest price increases throughout the year are health, communications and household equipment.

From January to July this year, the cumulative inflation rate in Argentina was 15.8%.

Corporate income tax rate 30%

Argentina's corporate income tax trends over the years | TRADING ECONOMICS

In 2020, the Argentine corporate income tax rate is 30%.

Personal income tax rate 35%

Argentina's corporate income tax trends over the years | TRADING ECONOMICS

In 2020, Argentina's personal income tax rate is 35%.

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