Argentina PESTLE Insights – A Macroeconomic Outlook Report

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Argentina PESTLE Insights Report Overview

Argentina was ranked 111th of 153 nations in the GCRI Q3 2023. The country’s GDP was estimated to be $638.6 billion in 2023. Argentina experienced an annual contraction in Q3 2023. In December 2023, Argentina’s central bank, under President Javier Milei’s new governance, shifted its benchmark interest rate to align with overnight repurchase agreements.

Key Sector’s Contribution to the Argentina Economy (2019-2026)

Key Sector’s Contribution to the Argentina Economy (2019-2026)

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GDP in 2023 $638.6 billion
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Argentina Macroeconomic Outlook - PESTLE Insights

Political Landscape

India and Argentina inked a ‘Social Security Agreement (SSA)’ on September 29, 2023, to safeguard professionals’ legal rights across both nations. This pact aims to enable secure international mobility and protect professionals and workers from losing social security benefits or contributions. The rising number of Indian professionals in Argentina and Argentine nationals in India prompted the establishment of this legal framework.

Economic Landscape

According to the International Trade Administration, Argentina possesses significant potential in its mining sector. Despite active mining sector engagement and numerous upcoming projects, the nation’s natural resources remain largely untapped. In 2023, Argentina’s mining exports increased significantly. The primary mineable ore minerals in Argentina include gold, silver, and copper. Argentina ranks third globally in lithium reserves and is the fourth largest producer.

Social Landscape

On December 26, 2023, Argentina’s newly inaugurated President Javier Milei’s administration announced its decision not to renew contracts for over 5,000 employees hired in 2023. This action is part of a broader strategy of austerity measures and currency devaluations introduced by the right-wing libertarian since his inauguration on December 10, aimed at revitalizing Argentina’s struggling economy.

Technological Landscape

In December 2023, Telecom Argentina became the nation’s pioneer in launching initial 5G antennas utilizing the 3.5 GHz band, marking a significant leap in technology. Operating under the personal brand, Telecom has activated over 240 antennas using Dynamic Spectrum Sharing (DSS) for 5G provision. However, Argentina’s scientific progress is hampered by inadequate investment in research and development (R&D), leading to limited innovation output.

Legal Landscape

In June 2023, Argentina’s executive branch submitted a new bill to the National Congress of Argentina, aiming to replace the existing Personal Data Protection Law. The proposed legislation seeks to broaden the definition of sensitive data, encompassing information regarding individuals’ private spheres such as gender identity, genetic details, and biometric data. Additionally, it addresses data usage that could lead to discrimination or pose a significant risk to data subjects.

Environmental Landscape

In January 2023, Argentina embarks on investing in more than 30 new mining projects over the next decade. Henceforth, environmentalists are rallying against the country’s expanding extractive economic approach. These groups are pooling resources, sharing experiences, and organizing resistance against what they perceive as externally driven projects, mainly originating from the global north. The environmental challenge lies in mitigating the potential ecological impacts.

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Scope

In October 2023, the government introduced 2024–26 public works investment program for 4,107 projects with an investment of $15.1 billion.

Key Highlights

The MERV index has been on an upward trend. As of February 7, 2024, the index stood at 1,260,998, compared to 246,804.2 on February 7, 2023.

Reasons to Buy

  • Macroeconomic Outlook Report identifies the potential of the country as an investment destination by analyzing the political, economic, social, technological, legal, and environmental (PESTLE) structure.
  • PESTLE Insights provides a 360-degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials, and direction of operations.
  • Along with providing the country’s snapshot, the report captures the risk factors regarding the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure, and natural and geographic aspects that might impact business.
  • This report also highlights key clusters/cities that contribute significantly to the country’s GDP and population along with major companies’ presence in these areas.

Litoral Gas
Correo
Galicia

Table of Contents

List of Exhibits

Did You Know?

Country Highlights

Key Economic Updates

Country Snapshot

Political Landscape

Economic Landscape

Social Landscape

Technological Landscape

Legal Landscape

Environmental Landscape

Outlook

Table

Exhibit 1: Argentina’s performance in country risk analysis in comparison to Latin America and World average

Exhibit 2: Performance overview (score: 0-100)

Exhibit 3: Broad categories and weights behind the index

Exhibit 4: MERV index, (February 2023 – February 2024)

Exhibit 5: Key sectors contribution to the economy (2019–26f)

Exhibit 6: FDI inflows and outflows (2018–22), FDI inward stock and outward stock (2018–22)

Exhibit 7: Greenfield FDI projects and net cross border M&A deals in Argentina (2018–22)

Exhibit 8: Key infrastructure indicators

Exhibit 9: Real GDP and household consumption growth rate (2019–26f)

Exhibit 10: Real GDP growth rate comparison (2023e)

Exhibit 11: Volume of exports and imports growth (2019–26f)

Exhibit 12: Current account balance (2019–26f)

Exhibit 13: Top three commodity exports, % of total exports (2018–22)

Exhibit 14: Exports of cereals, % of world total (2022)

Exhibit 15: Interest rates (December 2018 – December 2023)

Exhibit 16: Exchange rate and inflation (2019–26f)

Exhibit 17: Public finance (2019–26f)

Exhibit 18: General government debt (2019–26f)

Exhibit 19: Unemployment rate (2019–26f)

Exhibit 20: Average annual wages (2019–26f)

Exhibit 21: Labor cost index (2019–26f)

Exhibit 22: Rural/urban share of total population (1995, 2005, 2015, 2025f)

Exhibit 23: Age-group share of total population (1995, 2005, 2015, 2025f)

Exhibit 24: Gender split (1995, 2005, 2015, 2025f)

Exhibit 25: Internet users as a percentage of total population, mobile penetration rate and broadband penetration rate (2023e)

Exhibit 26: Number of patents granted per million population (2022)

Exhibit 27: High technology exports, % of manufactured exports (2022)

Exhibit 28: Rule of law index (rankings) 2023

Exhibit 29: Corruption perceptions index (rankings) (2023)

Exhibit 30: Renewable energy, installed capacity (2019–23e)

Exhibit 31: CO2 emissions (2018–22)

Figures

Exhibit 1: Argentina’s performance in terms of its country risk analysis in comparison to Latin America and the World average

Exhibit 2: Performance overview (score: 1–100)

Exhibit 3: Broad categories and weights behind the index

Exhibit 4: MERV stock index

Exhibit 5: Key sectors’ contribution to the economy

Exhibit 6: FDI inflows to Argentina, FDI outflows from Argentina, and FDI inward stock, FDI outward stock (2017–21)

Exhibit 7: Value and number of Greenfield FDI projects in Argentina and net cross border M&As purchases in Argentina (2017–21)

Exhibit 8: Key infrastructure indicators

Exhibit 9: Real GDP and household consumption growth rate (2018–25f)

Exhibit 10: Real GDP growth rate comparison (2022e)

Exhibit 11: Export, import and trade balance (2018–25f)

Exhibit 12: Current account balance (2018–25f)

Exhibit 13: Top three commodity exports, % of total exports (2017–21)

Exhibit 14: Cereals exports, % of world total (2021)

Exhibit 15: Interest rates (October 2018 – October 2022)

Exhibit 16: Exchange rate and inflation (2018–2025f)

Exhibit 17: Public finance (2018–25f)

Exhibit 18: General government debt (2018–25f)

Exhibit 19: Unemployment rate (2018–25f)

Exhibit 20: Average annual wages (2018–25f)

Exhibit 21: Labor cost index (2018–25f)

Exhibit 22: Rural/urban share of total population (1995, 2005, 2015, 2025)

Exhibit 23: Age-group share of total population (1995, 2005, 2015, 2025)

Exhibit 24: Gender split (1995, 2005, 2015, 2025)

Exhibit 25: Internet users % of total population, mobile penetration rate and broadband penetration rate (2022e)

Exhibit 26: Number of patents granted (2022e)

Exhibit 27: High-technology exports (% of manufactured exports) (2020)

Exhibit 28: Doing business in Argentina (2020)

Exhibit 29: Corruption perceptions index (rankings) (2022)

Exhibit 30: Renewable energy, installed capacity (2016–20)

Exhibit 31: CO2 emissions (2017–21)

Frequently asked questions

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