Download PDF Quick Facts Population: 44.6 million

GDP (PPP): $915.1 billion -2.5% growth -0.3% 5-year compound annual growth $20,537 per capita

Unemployment: 9.5%

Inflation (CPI): 34.3%

FDI Inflow: $12.2 billion

Argentina’s economic freedom score is 53.1, making its economy the 149th freest in the 2020 Index. Its overall score has increased by 0.9 point, primarily because of a higher government integrity score. Argentina is ranked 26th among 32 countries in the Americas region, and its overall score is well below the regional and world averages. Argentina’s economy, which had fallen into the repressed category from 2012–2016, made slow but steady progress during the Macri administration, but a recession that began in 2018 caused a contraction in GDP growth. Economic reforms intended to reduce inefficiencies and increase productivity were stalled by policy disagreements between the Congress and the president. With the return to power in 2019 of the left-wing populist Peronist party, whose policies caused such economic damage to Argentina earlier in this century, the prospects for new reforms that would improve economic freedom have dimmed. Read more about Argentina Economy. Close Background Argentina is South America’s second-largest country. Once one of the world’s wealthiest nations, it has vast agricultural and mineral resources and a highly educated population, but it also has a long history of political and economic instability. Center-right President Mauricio Macri lost his bid for re-election to Peronist candidate Alberto Fernández in October 2019 elections that also brought his predecessor, Cristina Fernández de Kirchner, back to power as vice president. Popular unease with the state of the economy, rising inflation, cripplingly high interest rates, and currency volatility overshadowed the progress Macri had made in mending relations with investors, seeking new trade and investment opportunities, and implementing numerous policy reforms with help from the International Monetary Fund.

Rule of LawView Methodology

The government has improved the protection of intellectual property rights, but deficiencies persist within the regimes for protection of patent and regulatory data. Secured interests in real property are recognized and enforced. The Macri administration’s “Justice 2020” initiative was intended to improve transparency and rule of law, but the weakness of anticorruption bodies and politicization of the judicial system have hampered progress.

Government SizeView Methodology

The top individual income tax rate is 35 percent, and the top corporate tax rate is 30 percent. Other taxes include value-added, wealth, and financial transactions taxes. The overall tax burden equals 30.3 percent of total domestic income. Government spending has amounted to 40.5 percent of the country’s output (GDP) over the past three years, and budget deficits have averaged 6.1 percent of GDP. Public debt is equivalent to 86.3 percent of GDP.

Regulatory EfficiencyView Methodology

Procedures for establishing limited liability companies have been streamlined, but economic and political hurdles have blocked other pro-business reforms. Argentina has a highly skilled and well-educated workforce, but taxes for pensions, the cost of health care, and other labor taxes remain high. Although the Macri government reduced many subsidies after taking office in 2015, it restored some of them in the run-up to the 2019 presidential election.

Open MarketsView Methodology

The total value of exports and imports of goods and services equals 30.8 percent of GDP. The average applied tariff rate is 7.9 percent, and 139 nontariff measures are in force. Foreign investment in various sectors remains regulated. The government exercises considerable control of financial activities. The presence of foreign banks has increased, but state-owned banks account for over 40 percent of total assets.