Select Page

Maybe now is the time to invest in Argentina.

Summary

Argentina’s economy is poised to experience solid growth as deregulation and economic liberalization deliver a sizable economic dividend.

President Macri’s policies are leading to a more stable economy and an ever improving economic outlook.

Argentina’s energy sector holds considerable growth potential and because of its huge unconventional resources coupled with Macri’s policies is attracting significant foreign investment.

As oil and gas production grows it will give the economy a further substantial boost.

The time is fast approaching when investors will need to shake-off their preconceived views about investing in Argentina and take the plunge in what has been regarded as Latin America’s most unstable economy. The center-left pro-business presidency of Macri is pushing ahead with the modernization of what for decades has been one of Latin America’s most unstable and heavily regulated economies.

Transitioning to a modern market economy

The transition that is underway in Latin America’s third largest economy is remarkable as the legacy of populism and Peronism is cast aside allowing a modern thriving market economy starts to emerge. Key to this process has been the removal of market warping and unsustainable policies aimed at creating economic growth that have proven to be more damaging than good.

These polices included wasteful capital controls, subsidies as well as tariffs on a wide range of products including energy as well as lopsided taxation. All of which coalesced to produce an environment of extreme economic uncertainty, distort prices, corrode the market mechanism and trigger rampant inflation while creating fiscal instability that fueled significant amounts of corruption.

Since Macri moved to unwind those policies, including removing stringent currency and capital controls as well as the energy tariff/subsidy regime which saw Argentina move form being a net energy exporter to net importer in 2011 despite its considerable oil and gas resources, the economy has sprung to life.