Argentina Infrastructure Report Q2 2016
BMI View: Private investment in Argentina's infrastructure sector should increase and the businessenvironment should improve now Mauricio Macri's centre-right government is in power. Meanwhile,Chinese and Russian backing of major projects, particularly in the energy and rail sectors, continues, butmay face greater domestic and international competition as the market begins to open.
Latest Updates And Structural Trends
The election of centre-right Mauricio Macri to president is expected to see a raft of business, trade andinvestment friendly policies enacted in the short- to medium term.
However, as 2016 will be the first year of economic and policy transition, we therefore expectArgentina's economy to contract 0.7% in 2016, before rebounding to 3.2% in 2017.
The construction industry will slow from 4.0% growth in 2015 to 1.0% in 2016, before experiencing3.0% annual average growth between 2017 and 2025.
Chinese investment in the energy, utilities and rail sectors will remain elevated in the years, accompaniedby an expected uptick in foreign direct investment.
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