EY – Argentina

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Have you ever heard of Unicorns in Argentina? They are worth more than one million dollars! No, I am not talking about the mythical creatures. I am referring to the companies in Argentina that are worth millions of dollars, which are known here as Unicorns. Our class got the opportunity to sit and listen to a speaker from the Ernst and Young accounting firm in Argentina! Throughout the information session, we learned many interesting facts about Argentina’s economy, government, investment opportunities, and much more.

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The inflation rate in Argentina is 50%, which is much higher compared to the United States’ 2.1%. In addition to inflation, their current GDP is -2%, but after the recent election of president Alberto Fernandez, they are striving for a preferred GDP of 3% by the year 2023. Interest rates fluctuate very rapidly in Argentina from week to week, and if you are looking for great investment opportunities this is the country to do it. The average return on investment in Argentina is roughly 40%, and has many higher rates sometimes rising over 40%. Some industry opportunities include agriculture, oil and gas, banks, and more. Our class created our own pie chart where we allocated 100 million dollars in these various investment opportunities, and decided what return rate we wished to receive from our current investments. We chose to invest in banks, oil and gas, and renewable energy.

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In 2008 Argentina experienced a conflict between the government and farmers. This was due to the new tax rate enforced by the government on soybean exports. The initial vote resulted in a tie between both parties, and was left in the hands of the vice president at the time who decided to go against his own party and establish a 30% tax rate on soybean exports. This tax rate is the highest that the government can increase it to, otherwise it would be considered unconstitutional and cause a horrendous uproar within Argentina. This rate was chosen due to the fact that soybeans are Argentina’s biggest export, and generate lots of money for the government.

In conclusion, I personally enjoyed listening to this information session and I believe I can say the majority of our class did so as well. We look forward to the adventures that await us on this Sophomore International Experience, and will always remember that there are unicorns in Argentina!