Argentina will grow 5.8% according to the estimates of the International Monetary Fund (IMF) in its World Economic Outlook (WEO) report, improving its previous forecast by almost one point. The national government expects a 7% growth of the Gross Domestic Product as a base for 2021, based on indicators that ratify a consolidation of the recovery of activity, employment, and the strengthening of public accounts. For the year 2022, the Fund expects a moderation in growth: it foresees an advance of 2.5%.
Category: Geopolitics
Information about international economic affairs that can impact the Argentinian economy.
Atucha III agreement with China moves forward with an investment of $7.9 bn
The Government is negotiating with China a package of investments in infrastructure works. Total disbursements will be around $35 billion. Among the priority projects are the construction of the Atucha III nuclear power plant. A consortium of Chinese banks led by the Industrial and Commercial Bank of China (ICBC) will finance it. It foresees a concession-type loan of $ 7.9 billion, which would cover 85% of the reactor's price. This amount would make the nuclear power plant the most significant Chinese investment outside its borders.
Moody’s maintains a negative outlook on Argentina
Moody's credit rating agency maintains a negative outlook on Argentina. The rating agency outlined this outlook in its most recent report on the country's situation. It points out that both the new SDR allocation and the increase in international commodity values will not reduce eventual default risk.
The trade deficit with Brazil is $180 mn in March
Trade exchange with Brazil closed in March with a deficit of $180 million for Argentina, after two months of surplus, with an increase in the flow between the two countries that had not recorded since August 2018. The total was over $23 billion.
The lithium industry is growing: there are 21 extraction projects for 93 million tons
The lithium industry represents an excellent opportunity to develop renewable energies and sustainable mobility worldwide. Argentina can play a strategic role in this global scenario: it is the third-largest lithium producer and the third-largest reserve in the world. Today in Argentina, there are two lithium mines in operation, one under construction and 17 advanced projects. In this total of 21 extraction projects, it has resources for 93 million tons. The ten most significant-scale projects account for 86% of the resources identified. Once the projects currently under investigation are advanced, it estimates that they can extract 350 thousand tons per year.
Soybean rose $25 in Chicago
The price of soybeans jumped more than $25 in the Chicago market on Wednesday, while corn advanced about $10, boosted by new U.S. planting estimates that were lower than those projected by traders.
BMW to buy lithium in Argentina for $334 million
The BMW automotive group announced that it had signed a $334 million contract with the U.S. mining company Livent, which is in charge of lithium extraction in the Salar del Hombre Muerto, in Catamarca, Argentina. This agreement will make Argentina the second-largest lithium producer in the world as of 2022. BMW to buy lithium in Argentina for $334 million.
Argentina lost a lawsuit in New York for the PBI Coupon
New York Judge Loretta Preska ruled against the country in the case brought by the vulture fund Aurelius due to how during 2014, Cristina Fernández de Kirchner's government modified the mechanism for measuring the national GDP. If the case settled, the country should pay a minimum of $1.2 billion for the GDP Coupon. According to Preska, the government acted in "bad faith".
Tiendanube receives $89 mn from U.S. investment funds
The Argentine e-commerce multinational Tiendanube confirmed the last hours' investment of $89 million made by Accel Partner, Thorntree Capital, Qualcomm Ventures, Kaszek and Kevin Efrusy. It is the second investment fund disbursement in just five months. They plan to grow 15 to 20 times in five years.
Digital House, an Argentinean talent development firm, raises $50 million
Digital House, a company dedicated to training talent in the knowledge economy, has just received an injection of $50 million from its impressive headquarters in the Belgrano neighbourhood. It is the most significant investment for an organization of its kind, focused on immersive remote courses. Digital House has expanded throughout most of Latin America. It is an expert in training new technologies: Mercado Libre, Globant and the River Wood fund, the leading investors.
