[slideshow_deploy id=’1597′] The Argentina retail market is the third most attractive market in Latin America and one that is currently undergoing significant reforms. The Argentina retail market continues to face challenges such as high operating costs, inflation, bureaucratic barriers, and high taxes. The expected rebound in consumption, and by extension was absent in 2017. Argentina’s retail market most important chains are hoping for 1%-2.5% growth in 2018. The effects of the slowdown affect Argentina’s retail players differently. Argentina’s retail formats under 500 m2 performed slightly better that the larger ones. Although import restrictions have been relaxed, high tariffs remain in place.
Argentina’s 2017 GDP grew at 3% according to Indec. Argentinians are estimated to top 44 million in 2018 and per-capita GDP is projected to rise to US$14.3 thousand, according to the IMF . The country’s middle class is the largest in the region on a percentage basis. The UN classified 90.6% of the population as urban and estimates that it will reach 93% by 2018. In addition to being mostly urban, Argentina’s population is relatively young, 38.0% of Argentinians fall between the ages of 20-44, and 64.9% of them are expected to be economically active.
The work is in progress though macro challenges remain. It is still too early to tell what lasting effects the policies of the Macri administration will end up having in Argentina’s retail markets, especially on FDI and the return of international brands.
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