Regional Importance
According to the World Bank, Argentina is the second largest economy in South America by GDP, trailing only Brazil. (Source: World Bank, 2014)
Agricultural Commodities
Argentina has historically been an important producer and supplier of agricultural commodities. It is the third largest exporter of corn in the world and is well set to experience a boom from its bumper corn crop plantation. USDA forecasts Argentina’s corn production in to reach a record high of 27 million tons this year. Argentina is also the third largest supplier of soybeans in the world. (Source: Wall Street Journal 2013, Reuters 2014)
Energy Developments
Argentina has the fourth largest supply of shale oil reserves in the world with an estimated 27 billion barrels. In their latest report, EIA increased the estimate of recoverable shale gas resources in Argentina from 774 trillion cubic feet to 802 trillion cubic feet. The increased reserves along with various discoveries in Argentina’s Vaca Muerta shale field are expected to draw a surge of investments into the country, as multinationals seek to participate in this energy boom.
(Source: EIA 2014, Wall Street Journal, 2014)
Infrastructure Expansion
The government has been looking to foster growth by drawing investment into energy and transportation infrastructure projects. Argentina recently signed trade and investment deals with China amounting to $7.5 billion for construction of its two hydroelectric dams and a railway project. (Reuters, 2014)
Foreign Reserves
2014 marks a decade since China and Argentina first became trade partners. Over this time, China has become Argentina’s second largest trade partner behind Brazil. As a key supplier of raw commodities, Argentina has been a major recipient of China’s $10 billion Latin America bond investment program which focuses on developing critical areas of trade including energy, natural resources, infrastructure, agriculture, manufacturing, technological innovation, and Information Technology. (CNBC, 2014).
 
 
Register   Send To Friend   Get Call Back   Visit Global X Website
DISCLOSURE
Investing involves risk, including the possible loss of principal. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Investments focusing on a single country may be subject to higher volatility.
Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates. MSCI Indexes have been licensed for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by MSCI, nor does this company make any representations regarding the advisability of investing in the Global X Funds.