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January 2019 PM Update from Buenos Aires

Analysis of 2018 and outlook for 2019 in Argentina

 

REPORT

By Cecilia Boggi, PMP

International Correspondent

Buenos Aires, Argentina

 


 

It’s just finished a very difficult year for the Argentine Republic.

According to the preliminary balance of 2018 done by the Economic Commission for Latin America and the Caribbean (ECLAC), Argentina’s economy contracts by 2.6% in 2018.

A strong devaluation of the currency, an increase in interest rates and an inflation of almost 48% per year generating a diminution in family income, are indicators of this declining in the economy according to ECLAC.

The recession is not uniform for all industries; some sectors have maintained their growth, according to the Minister of Production and Labor, Dante Sica, who clarifies that some industries representing around 25% of employment in Argentina are still growing, such as fishing, knowledge-based services, energy, livestock, telecommunications and tourism.

Instead, the agricultural sector has had a bad year due to the great drought that had a strong impact on harvests. The domestic market, the textile industry, footwear and leather goods and food also fell. Construction is an industry that was growing at a good pace, but has slowed down after the devaluation.

In contrast, the energy sector, and in particular the oil and gas industry, had a great year, with a record production of unconventional hydrocarbons in the Vaca Muerta formation, of 30 thousand square kilometers located in the Neuquén Basin, in the Argentine Patagonia.

The boom in Vaca Muerta and the change in energy policy have generated other benefits, such as the fact that Argentina was able to suspend the contracting of a re-gasifier ship that was 10 years in the country receiving liquefied gas to supply the domestic market and that cost millions of dollars to the country.

Additionally, the executive director of the Chamber of the Chemical and Petrochemical Industry (CIQYP), Jorge de Zavaleta, affirms that the petrochemical industry, a sector that employs 110,000 employees in the value chain, sells US $ 25,000 million annually and represents a 12 % of the GDP, is the indistry that can add more added value in the coming years to the growing production of gas from the Neuquén formation of Vaca Muerta.

More…

To read entire report click here for (English) or (Spanish)

 

To cite this article: Boggi, C. (2019). Analysis of 2018 and outlook for 2019 in Argentina; Project Management Report from Argentina, PM World Journal, Vol. VIII, Issue I (January). Available online at https://pmworldjournal.net/wp-content/uploads/2019/01/pmwj78-Jan2019-Boggi-argentina-regional-report-english.pdf

 



About the Author


CECILIA BOGGI

International Correspondent
Buenos Aires, Argentina

 

 

 

 

Cecilia Boggi, PMP is founder and Executive Director of activePMO, giving consulting services and training in Project Management and Leadership skills in Argentina and Latin America.

After graduating with a degree in Computer Science Engineering from Universidad de Buenos Aires, Argentina, she has managed software development projects and PMO implementation projects for more than 20 years both in the government and private sector. Cecilia has an Executive Master in Business Administration from Universidad Francisco de Vitoria, Spain and also has graduated from an Executive Program in Business Management at Universidad del CEMA. She holds the Project Management Professional (PMP®) credential since 2003, is certified as SDI Facilitator from Personal Strengths©, is a Professional Executive Coach accredited by Association for Coaching, UK, and alumni of the PMI Leadership Institute Master Class 2012.  Ms. Boggi is Past President of the PMI Buenos Aires Argentina Chapter, and is a founding member of the PMI Nuevo Cuyo Chapter and PMI Santa Cruz Bolivia Chapter. She was PMI’s Mentor for Region 13, Latin America South, for the years 2014-2016.  Cecilia participated in the development of PMI’s PMBOK® Guide 5th Edition, leading the Chapter 9, Human Resource Management, content team; she is professor of Project Management and Leadership in some Universities and Institutes in Latin America.

She can be contacted at [email protected] and www.activepmo.com

To view other works by Cecilia Boggi, visit her author showcase in the PM World Library at http://pmworldlibrary.net/authors/cecilia-boggi/.