Basic Keys To Consider When Stepping Into The Argentine Private Equity Arena

THE ARGENTINE ECONOMIC AND POLITICAL

SCENARIO.

The Economy's Fundamentals. Argentina's

GDP grew from 2003 to 2007 at annual rates higher than 8%, barely

declining to around 7% in 20081. However, the

global crisis accelerated the end of such impressive growth cycle,

and the GDP's evolution for 2009 is expected to be close to

cero2. Meanwhile, the annual inflation level is in

between 15 to 20 percent3, and the quotation of the U.S.

dollar as of mid August 2009 is around Pesos 3.85 to the

Dollar4. In this scenario, treasury reserves amount to

approximately US$ 45,000,000,0005, which allows the

government to maintain its grip for the time being. In any case,

the economy's fundamentals remain adequate, with surpluses both

on the fiscal and current accounts, even if threatened by the

voracious rise in public expenditure.

Probably the near future of the Argentine economic scenario will

highly depend on the evolution of the agribusiness commodities'

prices, since Argentina...

Si ya es cliente de vLex, Acceda Aquí