Argentine economic history can be pictured as a series of severe economic ups and downs, which has created unique challenges for growing businesses and entrepreneurs. In order to successfully cope with this economic “roller coaster” Argentine entrepreneurs have been forced to craft creative strategies and organizational forms. Led by record exports, the economy began to recover somewhat with output up 8% in 2003, unemployment falling, and inflation reduced to under 4% at year-end. However, While Argentines are seemingly buying back into their economy, as sick as it still is, most foreign equity investors are hesitant to touch the country. Despite bargain basement prices, most assets can be acquired for little more than a buyer’s promise to assume the company’s debt, as macroeconomic and political uncertainty remains a major deterrent.

In 2001 and 2002 there was significant political and economic upheaval, and during 2002 the Argentine peso, which was pegged one to one to the US dollar during the 1990’s, devalued substantially. Opportunities are mainly in the export driven industries, which have become more competitive with devaluation.

Important Resources