Economic overview of the Province of Buenos AiresDirección Provincial de Estudios y Proyecciones Económicas (DPEPE) and Subsecretaría

de Coordinación con Estados y Organismos de Crédito Internacionales (SCEOCI)

Friday 17th, February 2012Ministerio de Economía de la Provincia de Buenos Aires

La Plata - Buenos Aires - Argentina

The Province of Buenos Aires

• Is the biggest and most important province of Argentina• It occupies 11% of the total land area• Accounts for 39% of the population• Contributes 36% of Argentina's GDP• Generates 48% of the country's industrial production• Participates with 33% of exports

Buenos Aires GDP growth• Between 2003 and 2010

the province grew 94%, mainly due to its industrial profile

• 2009 global crisis stalled deeper in the province than in the rest of the country, but the subsequent recovery was also stronger

2003 2004 2005 2006 2007 2008 2009 2010-5%

0%

5%

10%

15%

10.6%

13.2%

10.7%

8.8%10.1%

6.2%

-3.5%

13.9%

Annu

al g

row

th r

ate

Diversified productive structure

Industry26.9%

Transport17.3%

Real Estate Ss.13.3%

Commerce12.0%

Construction5.8%Agriculture

4.3%Communitary Ss.

3.9%

Public Adm.3.2%

Education3.0%

Others10.4%

Agriculture• Although agriculture represents only 4.3% of the

GDP, it is a significant sector for the Province of Buenos Aires because of its productive linkages and importance in exports

• The major crops of the Province are soy, corn, wheat and sunflower

• 86% of total sown area in the province goes to these crops

AgriculturePlanted area Production

Soy Wheat Sunflower Corn0

2,000

4,000

6,000

8,000

5,67

6

2,16

8

873

1,13

3

5,93

5

2,29

6

954 1,42

8

6,04

9

2,27

8

952 1,

516

09/10 Crop-year10/11 Crop-year11/12 Crop-year

Thou

sand

s of h

as

Soy Wheat Sunflower Corn0

5,000

10,000

15,000

20,000

17,0

55

5,63

8

1,51

9

8,12

9

15,4

65

8,87

4

2,11

4

8,22

7

8,37

4

09/10 Crop-year10/11 Crop-year11/12 Crop-year

Thou

sand

s of

tons

Agriculture• Among these, soy is the most important crop• Production destination (beans and oil) is mainly

China• Soy witnessed a remarkable growth in recent

years, replacing traditional crops like wheat

Industry• It is the most important economic sector of the

Province, representing 27% of Buenos Aires’ GPD• Argentina’s domestic industry is located primarily

in the industrial belt of the Province of Buenos Aires (which represents 48% of the domestic industry)

Industry• It has been one of the most dynamic sectors of

the province

2002 2003 2004 2005 2006 2007 2008 2009 2010-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Annual growth rate (left axis)

Industrial GDP (right axis)

Annu

al g

row

th r

ate

Millions of constant pesos of 1999

2003/2011 Growth

92%

Industry• Within industry, automotive, steel and food were

the most dynamic sectors• Because of its share in national production (66%),

another remarkable sector of the Province is oil processing

IndustryCar production

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-100%

-50%

0%

50%

100%

150%

0

50

100

150

200

250

300

Annual growth rate(left axis)Car production (right axis)

Annu

al g

row

h ra

teThousands of units

2003/2011 Growth

361%

IndustryCrude steel production

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

80

90

100

110

120

130

140

150

Annual growth rate (left axis)

Crude steel production (right axis)

Annu

al g

row

th r

ate

Annual average (index 1999=100)

2003/2011 Growth

26%

IndustryFood production

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

80

580

1,080

1,580

2,080

2,580

Annual growth rate (left axis)

Poultry slaughter

Annu

al g

row

th r

ate Thousands of heads

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

80

580

1,080

1,580

2,080

2,580

Annual growth rate (left axis)

Cookies and biscuits

Annu

al g

row

th r

ate

Annual average (index 1999=100)

2003/2011 Growth

193%2003/2011 Growth

183%

Construction

• It had a tremendous growth in the last decade tied to the economic boom and increased public investment

Construction

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

40

60

80

100

120

140

160

180

Annual growth rate (left axis)Cement disptaches (right axis)

Annu

al g

row

th r

ate

Annual average (index 1999=100)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

40

50

60

70

80

90

100

110

120

130

140

Annual growth rate (left axis)Brick sales (right axis)

Annu

al g

row

th r

ate

Annual average (index 1999=100)

2003/2011 Growth

173%2003/2011 Growth

97%

Destination of production• The export sector has been one of the most

dynamic in the last years• In addition, domestic consumption has also been

significantly strengthened, including both durables and non-durables goods

Buenos Aires exports• Between 2003 and 2011

the Province’s exports grew 205%

• More than a half are manufactured goods

• Buenos Aires exports to China rose near 500% since 2002, and its share in Province’s total exports doubled

2003/2011 Growth

205%

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-30%

-20%

-10%

0%

10%

20%

30%

40%

0

5,000

10,000

15,000

20,000

25,000

30,000

Annual growth rate (left axis)Total exports (right axis)

Annu

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row

th r

ate

Millions of dollars (FO

B)

Buenos Aires exportsBy major items By destinations

Primary pro-ducts21.3%

Agricultural Manufactures

20.6%

Industrial Manu-factures52.2%

Fuel and Energy5.9%

Brazil36.7%

China6.0%

Chile5.8%

Uruguay3.9%

Alemania3.7%

USA3.5%

Others40.3%

ConsumptionDurables consumption

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-100%

-50%

0%

50%

100%

150%

0

50

100

150

200

250

300

Annual growth rate (left axis)Car registration (right axis)

Annu

al g

row

th r

ate Thousands of units

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-80%

-60%

-40%

-20%

0%

20%

40%

60%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Annual growth rate (left axis)Real estate business (right axis)

Annu

al g

row

th r

ate

Millions of current dollars

2003/2011 Growth

874%2003/2011 Growth

385%

ConsumptionNon-durables consumption

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Annual growth rate (left axis)Supermarket sales (right axis)

Annu

al g

row

th r

ate

Millions of constant pesos of 1999

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-80%

-60%

-40%

-20%

0%

20%

40%

60%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Annual growth rate (left axis)Shopping centers sales (right axis)

Annu

al g

row

th r

ate

Millions of constant pesos of 1999

2003/2011 Growth

74%2003/2011 Growth

402%

Thank you very much for your attention

Economic overview of the Province of Buenos AiresDirección Provincial de Estudios y Proyecciones Económicas (DPEPE) and Subsecretaría

de Coordinación con Estados y Organismos de Crédito Internacionales (SCEOCI)

Friday 17th, February 2012Ministerio de Economía de la Provincia de Buenos Aires

La Plata - Buenos Aires - Argentina