LAST YEAR, ARGENTINA’S economy grew by 9.2% compared with 0.9% in 2009 and 6.8% in 2008, according to official figures produced by Indec, the national statistics agency. Econviews, a local economic consultancy, says that official numbers overstate the growth rate but that nonetheless the economy expanded vigorously at 8.1% last year after a contraction of 3.2% in 2009. It forecasts economic growth at 6.5% this year and 4% next year.
For the year to August 22, Argentina had a total of $3.9 billion of equity capital markets activity, made up of six separate transactions, according to data provider Dealogic. Last year, total activity added up to just $199 million in three separate deals; in 2009 it amounted to only $44 million with three deals; and in 2008 to $426 million again with three transactions. This year the country has accounted for 17% of all ECM activity coming out of Latin America, with Brazil accounting for 46%. Brazil’s dominance has dramatically weakened this year: last year it made up 90% of activity and Argentina 0%. In 2009, it accounted for 88% and Argentina again zero.
According to the Buenos Aires Stock Exchange, Argentina had the highest level of primary market activity this year in a decade: for the year to the end of July, total activity was $5.4