Gross Domestic Product Growth GDP Growth Rate 2 5 Latin America Developing Asia China Developed Aisa Western Europe 5-5 Data Source: WB, ADB, IMF, and Bloomberg 8 85 9 95 3
GDP Growth in Latin America GDP Growth Rate 5 All countries enjoyed positive growth rate 5-5 - -5 9 Argentina Chile Mexico Venezuela 9 92 Brazil Colombia Peru 93 94 95 96 Data Source: WB, IMF, and Bloomberg 97 98 99 2 3
Human Development Indicator HDI..9 Latin America Developing Asia Developed Asia Western Europe.8.7.6.5.4 975 Data Source: UN 98 985 99 995 2
Human Development Indicator.9.8 China India Latin America.7.6.5.4.3.2. 975 98 985 99 995 2 Data Source: UN
Income Distribution vs. Income Level Gini Coefficient (Y-axis) vs. GDP per Capita (X-axis) 6 5 4 3 2 China Latin America Developed Asia India Developing Asia Pakistan Japan Western Europe U.S. Data Source: WB, 2, 3, 4,
Gini Coefficient 6 5 4 3 2 Changes in Inequality over the Past two Decades China Latin America India Developed Asia 8-84 85-89 9-94 95-99 Data Source: WB
Income Distribution % of Income 5 4 Latin America Developing Asia China Pakistan U.S. Developed Asia Western Europe India Japan 3 2 Data Source: WB Lowest % Highest %
5 45 4 35 3 25 Percentage Share of Consumption the Wealthiest % 2 Brazil Colombia Chile Mexico Argentina Malaysia Venezuela Philippines Data Source: WB and ADB Peru Hong Kong Thailand Cambodia India Singapore Lao US China Vietnam Indonesia Pakistan Korea Japan
Proportion of Population under $ a Day 4 35 3 25 2 5 5 India Lao Viet Nam China Peru Venezuela Data Source: WB & ADB Philippines Colombia Pakistan Brazil Mexico Indonesia Chile Korea Malaysia Thailand
Share of Merchandise Export % 8% Others Fuel Food Raw Materials Manufactures Data Source: WB 6% 4% 2% % Latin America China India Japan U.S.
Scorecard of Economic Reforms in Selected Latin American Countries Argentina Brazil Chile Colombia Mexico Peru Venezuela Public Finance 2 3 3 3 2 Tax/budget reform 2 2 3 Exchange rate 2 3 3 2 Financial market 3 2 2 2 Trade opening 3 2 3 2 FDI liberalization 3 2 2 Labor reform 2 Pension reform 3 2
Scorecard of Economic Reforms in Selected Latin American Countries (continued) Argentina Brazil Chile Colombia Mexico Peru Venezuela Privatization 3 2 3 2 Deregulation 2 2 3 Property rights 3 Basic needs 3 Infrastructure 2 Good laws/courts 3 Good institutions 3 Total score /45 8/45 43/45 4/45 2/45 5/45 /45
Personal Computers per, People 35 3 25 2 5 67.4 5 India Data Source: WB Developing Asia Sub-Saharan Africa China Middle East & North Africa Latin America Developed Asia Japan
Latin America s Financial System World Total Percent of Total Accounted for by: China Japan United States Latin America Population 6. billion 2.8 2. 4.5 6.9 GDP $3. trillion 3.7 3.6 32.7 5.5 Bank Assets $36.9 trillion 5.3 6.2 5.7 2. Equity Market Capitalization $27.8 trillion.9 8. 49.6 2. Bonds Outstanding $3.6 trillion.7 6.7 54..
Percentage of Total Assets of Three % 9 8 7 6 5 4 3 2 Largest Commercial Banks China Latin America Developed Asia Japan U.S. Data Source: MI
Country Risk Very Low Risk Low Risk Moderate Risk High Risk 9 8 7 6 5 Singapore Japan Hong Kong Korea Malaysia Chile China Thailand Mexico Vietnam Philippines Peru India Brazil Colombia Indonesia Pakistan Venezuela Argentina Data Source: ICRG
Country Risk 9 Very Low Risk Low Risk Moderate Risk High Risk 8 7 6 5 Japan Developed Asia China India Developing Asia Latin America Pakistan Data Source: ICRG
Argentina IN THE PATH TO GROWTH Presentation by Jose Octavio Bordón Ambassador of the Argentine Republic to the US Los Angeles, April 24
ARGENTINA
One Country, Many Landscapes
Argentina Today Recovery started in the second quarter of 22, and there have been six consecutive quarters of growth for the first time since 997
Argentina Today Poverty descended from around 55% (May 23) to 47.8% Industrial activity grew 6.2% and construction 37.8% last year Inflation was 3.7% in 23 and currently is 2.4%
Fiscal Sector As from May 22, the deficit in fiscal accounts was reversed as a result of public spending stabilization and increased tax collection Surplus in the first quarter of 24: 3,989.3 mill. pesos, three times the amount agreed with the IMF
Financial Sector
Financial Sector
Unemployment 25% 2% 5% % 5% % May '85 May '86 Apr. '86 Unemployment Rate May. '87 May. '88 May. '89 May. '9 May. '9 May. '92 May. '93 May. '94 May. '95 May. '96 May. '97 May. '98 May. '99 May. ' May. ' May. '2 May. '3
Argentine Exports by Destination 23 (%) 4 9 MERCOSUR MIDDLE EAST (9 %) (3 %) 7 3 NAFTA EUROPEAN UNION (2 %) (4 %) CHILE (2 %) 4 ASEAN, Korea, China, Japan e India (7 %) REST ALADI (4 %) 2 2 OTHERS ( %) Source: Argentine National Institute of Statistics and Census
Argentine Exports by Destination 23 European Union Mercosur Of which Brazil NAFTA Of which USA Chile China Andean Community ASEAN Middle East Japan Rest of the World Total Million U$S 5,882 5,55 4,65 4,46 3,34 3,46 2,443,49, 827 37 5,4 29,35 Source: Argentine National Institute of Statistics and Census In % 2. 8.9 5.7 3.8.3.6 8.3 3.9 3.8 2.8.3 8.4.
Argentine Imports by Origin 23 (%) 3 8 37 MERCOSUR NAFTA CHILE (9 %) (2 %) (37 %) EUROPEAN UNION (2 %) 2 ASEAN, Korea, China, Japan, India REST ALADI (3 %) ( %) 2 9 OTHERS (8 %) Source: Argentine National Institute of Statistics and Census
Argentine Imports by Origin 23 Million U$S In % Mercosur of which Brazil European Union NAFTA of which USA China Japan Chile ASEAN Andean Community Middle East Rest of the World Total 5,58 4,7 2,79 2,558 2,232 72 395 29 268 8 5,66 3,83 37.3 34. 9.6 8.5 6.2 5.2 2.9 2..9.8.4.6. Source: Argentine National Institute of Statistics and Census
Argentine Exports by type of Goods 23 (%) 8 22 PRIMARY PRODUCTS (22 %) 26 34 MANUFACTURES OF AGRICULTURAL ORIGIN (34 %) MANUFACTURES OF INDUSTRIAL ORIGIN (26 %) FUELS & ENERGY (8 %) Source: Argentine National Institute of Statistics and Census
Argentine Exports by Category 23 (%) 3 4 8 CAPITAL GOODS (8 %) INTERMEDIATE GOODS (45 %) FUELS (4 %) 6 PARTS OF CAPITAL GOODS (6 %) 4 45 CONSUMER GOODS (3 %) VEHICLES (4 %) Source: Argentine National Institute of Statistics and Census
Trade Balance U.S. Argentina US $ MILLIONS 5 EXPO IMPO BALANCE 4 3 2 - -2 2 2 22 23 Source: U.S. International Trade Commission
U.S. Argentina Trade Imports for Consumption/Domestic Exports - in millions of dollars - US Exports US Imports US Balance Total Trade 22,496 3,2 -,75 4,77 23 2,232 3,95-863 5,327 PERCENTAGE CHANGE 23/22 US Exports US Imports US Deficit Total Trade 49,2-3,6-49,2 3,2 ARGENTINA s SHARE IN TOTAL US TRADE In US Exports In US Imports 22 23,24%,34%,28%,25% Source: U.S. International Trade Commission
U.S. Argentina Trade - in millions of dollars Arg. Exports Arg. Imports Arg. Balance Total Trade 22 2,869,788,8 4,657 23 3,34 2,232 82 5,266 PERCENTAGE CHANGE 23/22 Arg. Exports Arg. Imports Arg. Surplus Total Trade 23/22 5,7 24,8-25,9 3, US SHARE IN TOTAL ARGENTINE TRADE In Arg. Exports In Arg. Imports 22 23,2%,3% 9,9% 6,2% Source: Argentine National Institute of Statistics and Census
U.S. Imports from Argentina 3 25 2 5 5 US $ MILLIONS AGRICULTURAL NON-AGRICULTURAL 2 2 22 23. Source: U.S. International Trade Commission
U.S. Imports from Argentina MAIN CHAPTERS (HTS) US $ MILLIONS 87-Vehicles and parts 44-Wood/Charcoal 3-Fish/Crustaceans 29-Organic Chemicals 23 94-Furniture 72-Iron and Steel 2-Vegetable/Fruit Prep. 76-Aluminum 4-Raw Hides/Skins 2 4 6 8 2 4 27-Petroleum Oils/Residues Source: U.S. International Trade Commission
U.S. Exports to Argentina MAIN CHAPTERS (HTS) US $ MILLIONS 3-Pharmaceutical Prod. 98-Special Clasif. 38-Misc. chemical prod. 3-Fertilizers 23 87-Vehicles and parts 9-Optical, Photo aparatus 39-Plastics 85-Electric Machinery 29-Organic Chemicals 2 3 4 5 6 84-Machinery/Mec. Appliances Source: U.S. International Trade Commission
Argentina s Active Role in Trade Negociations Multilateral: World Trade Organization (WTO) Hemispheric: FTAA Regional: MERCOSUR - Intra-Mercosur (economic integration: not only trade) - Mercosur trade negotiations with trading partners Bilateral: - US-Argentina Trade & Investment Council has become a very useful tool to address bilateral issues.
Argentina s Export Offer World known for agricultural and food products, both conventional and organic. Other agricultural and industrial manufactures, well known among traditional customers, have regained competitiveness and show increasing demand based on excellent price/quality ratio. Over 82% of Argentina exports to US are non-ag.
Argentina s Ranking as U.S. PRODUCT Supplier of Food Products WORLD RANKING GRAPE JUICE PEARS PEANUTS APPLE JUICE 2 ITALIAN TYPE CHEESE 2 FRUIT & VEGETABLE JUICES 3 RED MEATS, PREPARED/PRESERVED 3 TEA 4 TOBACCO 4 ESSENTIAL OILS 5 CANDIES 5 ARGENTINA IS ALSO AMONG THE WORLD U.S. SUPPLIERS OF: FISH; HONEY; CANE SUGAR; FRESH VEGETABLES; WINE AND BEER; WOOD PRODUCTS; SHRIMPS AND PLANTING SEEDS
Argentina is Among the Top Ten World Producers of Major Commodities COMMODITY EXPORTS ARGENTINA S WORLD RANK WHEAT COARSEGRAINS 7 SOYBEANS 3 SOYMEAL 3 SOYOIL 3 SUNFLOWER SEED 2 BEEF 4 Source: Economic Research Service, USDA.
Argentine Educated Work Force Qualified human resources based on high education level and availability of latest infrastructure and technology result in Argentine exports of value added products and services. Design, IT products and services, Educational services, Biotechnology, etc.
Argentina in the Knowledge Era Systemic competitiveness. Holistic but at the same time specific vision. Moral but pragmatic attitude. Better skills than tools. More behavior than skills.
Final Comments Main risk of the Globalization process: inequality Approach to Globalization must be done from the point of view of the human being Values: freedom, peace, democracy, human rigths, environment and capitalism with social justice From politics: multilateralism, open regionalism and responsible leadership
President Kirchner Administration Commitment. Institutional quality 2. Good administration 3. Officialism with institutional leadership and without hegemony
In Brief A new leadership for a new era. WE HAVE A CHALLENGE AND A SOCIAL, FISCAL AND INTERNATIONAL RESPONSIBILITY IN A NON CONFLICT SCENARIO
EMBASSY OF ARGENTINA Washington D.C.