Industry Trend Analysis - Economic And Political Risks Hinder Growth - SEPT 2014

BMI View: The Argentine economy is still reeling from the January 2014 currency devaluation. Soaring inflation and stringent drug pricing controls will continue to discourage investment and erode the growth of the country's pharmaceutical market.

The ability of Argentina's healthcare institutions to purchase imported drugs has been sharply reduced in recent years, and continues to deteriorate due to the sustained weakness of the Argentine peso compared with regional currencies and the US dollar. Argentina's January 2014 currency devaluation will weigh heavily on real consumption growth for both private and public sector.

BMI anticipates that the local industry will seek to fill the gap in demand while also attempting to diversify market exposure. Emphasis is likely to be placed on local producers, rather than multinationals with domestic manufacturing facilities, as the prices of the latter will be considered too high. This will translate into lower growth rates than was the case previously.

Contraction In Real Term For 2014
Argentine Pharmaceutical Market Outlook

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