McNutt Predicts Argentine Economic Comeback

Share this content:
Argentina may be coming back as a lucrative market for DM and Internet marketers, said Bill McNutt, president of International Direct Marketing Consultants Inc., who has conducted trade missions to the region for more than a decade. He has scheduled another one June 10-15.

He cited the growth of credit card penetration in Argentina as one example. American Express has 400,000 members in the country. Billboards along the highway from the airport feature credit card companies.

Per capita income in Buenos Aires, the capital, is $18,000 a year, the highest in Latin America. Internet use has increased 25 percent in the past year, with 74 percent of users accessing the Web from home, the rest from work.

Commercial officials at the U.S. embassy told McNutt that Argentina is coming out of last year's recession, and they projected economic growth of 2 percent this year.

The best time to start a relationship with potential partners, vendors and service suppliers, he said they told him, "is when they are coming out of a recession. The Argentines appreciate loyalty. The time is right to open relationships."

McNutt also said officials stressed the move among Latin American countries toward pegging their currencies to the value of the dollar, something Argentina has done since 1991.

But few economists agree with McNutt on this point. Argentina's new economics minister, Domingo Cavallo, favors switching from the dollar to a basket of currencies, including the euro.

The central bank and the currency board oppose the proposal, and media reports say the dispute is not helping a still shaky Argentine economy.

The Economist reported last month that tax revenue in March dropped 13 percent from March 2000 and that Cavallo is cutting public spending by another $500 million.

Cavallo, who has been economics minister before, was drafted several weeks ago in what The Economist called "a desperate effort to stave off a collapse of economic confidence."


Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above