It was not a slow news weekend here in Buenos Aires. The MarketWatch headline, Chinese to Continue Argentina Investment Wave, confirmed the expanding trade and investment relationship between our two countries.
Chinese investment commitments in Argentina this year had already surpassed US$10 billion by May, and Shane Romig’s article details how much of that investment is now spreading into finance and infrastructure development.
The MarketWatch story came on the heels of a new data regarding investment growth in Latin America. In the first quarter of 2011, investment in Argentina rose 19.5%, the second-highest reported growth rate in Latin America after Chile (20.4%) and more than double the reported growth in investment in Brazil (8.8%). Argentina’s 1Q11 investment growth rate was also superior to Ecuador (17%), Paraguay (13%), Peru (12%), Colombia (9%) and Mexico (8%).
According to the report, almost half of the investment in Argentina in 1Q11 related to construction which grew a healthy 8.8% compared to 1Q10, while the purchase of durable goods rose 33.4%. Both companies and countries are seeking to expand their production capacity in Argentina and, in the case of China, finance the needed infrastructure improvements to accelerate the supply chain.
The MarketWatch article details the size and scope of several Chinese investment projects which can only be described as superlatives across multiple sectors of the Argentine economy including $2.6 billion in financing for rail modernization, a $1.5 billion soybean venture in Rio Negro, a $750 million copper refinery, and a $600 million stake in Standard Bank Argentina. (Full Story)
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