Mining is an enormous global industry, and one that is incredibly prevalent in countless countries across the globe. Because of this propensity, many economies have flourished with high mining outputs. One country that might be able to benefit from increased mining over the next few years is Argentina, whose economy has seen only sluggish progress over the past several years. New possibilities on the horizon look to be a good sign for increased mining investment in the country, which could finally push GDP growth to a healthy level for the first time in several years. Here’s some information about how mining might be able to save the Argentinian economy…
One of the big reasons for this increase in Argentinean mining potential is that there are new reforms that are taking place in Argentina’s economy. These reforms include opening up the currency to more liberal exchange rates, lowering the taxes on cross-border trade, and austerity measures that will put the country back in good credit. These are good steps, as the current climate in Argentina has stopped nearly 41% of mining investment that have speculated in Argentina.
Previous trade obstacles slowed mining investment
Trade barriers in Argentina have made starting a healthy mining industry there quite a complicated ordeal. This has led to increased mining investment in other countries in the region, such as Peru and Chile, which has led to enormous economic gains. However, Argentina has not been able to share in that potential. Another huge obstacle is that the inflation in Argentina needs to be tamed in to make the profits in the country worthwhile to export.
There’s a huge potential for mining in Argentina
It’s important that the country is able to take these steps, as the payoff could be huge. In terms of resource potential and surveyors, Argentina has been ranked the 6th highest country on the planet by the international Mining Journal Survey. Being able to utilize the country’s natural resources for trade and domestic use will give the economy a boost of much needed life that has been so lacking there since the global recession.