Strengthening pro-growth reforms in Argentina 

Read the Spanish version here.

By Adolfo Rodríguez Vargas and Priscilla Fialho 

Argentina has taken decisive steps to stabilise its economy and address long-standing macroeconomic imbalances. Macroeconomic instability has been one element holding back growth, but more structural factors can also help explain Argentina’s declining labour productivity, which has reduced the economy’s growth potential to just 0.5% annually (Figure 1). Argentina has begun to tackle these structural factors through ambitious reforms across a wide range of policy areas. The 2025 OECD Economic Survey of Argentina reviews advances and pending challenges and presents policy recommendations to further boost productivity and growth. 

Figure 1. Securing reform momentum can revive productivity growth  

GDP per person employed, constant 2021 purchasing power parity $, Index 2011 = 100 

Making domestic markets more competitive  

For decades, high entry barriers have reduced competition in key sectors and regulations have placed high financial and administrative burdens on Argentinian firms. Recent reforms to make regulations more competition-friendly and reduce entry barriers have improved the business environment (Figure 2). The implementation of silence-is-consent rules, the streamlining of procedures and requirements in many sectors including agriculture and retail, and the removal of unjustified technical requirements for industrial products have been key elements of these reforms. Entry barriers have also been lowered in network sectors like transport and communications. Rent controls and other price controls have also been scaled back.

Estimates presented in the OECD Economic Survey suggest considerable potential output gains from the regulatory reforms that have been achieved so far. By 2050 output is expected to be 2.7% higher compared with a situation where regulation would have remained as in 2018. Implementing further reforms over the coming decade to align regulations OECD best practice could boost incomes by another 6.8%. 

But more can be done to strengthen competition in domestic markets. The Economic Survey focuses particularly on entry barriers in services sectors and administrative burdens for establishing new firms. Barriers to entry imposed by provincial governments persist in several professional services, retail activities still face many restrictions, and entrepreneurs must cope with time-consuming procedures when starting their businesses. The Survey also recommends to systematically assess the effects of regulatory changes on competition to avoid collateral damage on competition from the design of new rules. Establishing an independent competition authority, as mandated by law, could create strong momentum for promoting competition. 

Figure 2. Making regulations more competition-friendly can boost productivity and employment

Product Market Regulation overall indicator 

Tearing down trade barriers 

Argentina trades relatively little with other countries for an economy of its size, and participates little in global value chains. Enhancing its integration into the world economy would allow firms to access higher-quality inputs and technology, potentially boosting their productivity.   

Recent reforms have included reductions in trade barriers, including through measures in  trade facilitation. A special tax on all imports has been eliminated, and tariffs on many products have been significantly reduced, including consumer goods and industrial inputs. Non-tariff barriers have also been reduced or even dropped entirely. A cumbersome non‑automatic import licensing regime has been scrapped and technical requirements have been eased for many products. Barriers to exports have also been lowered, although export taxes remain in place for some major exported goods. One area where further progress could support stronger export performance is the quality of trade logistics, which remains below the OECD mean and has deteriorated. 

The Economic Survey discusses possible ways to promote further integration into world markets. These include further tariff cuts, especially on intermediate inputs and capital goods, and continuous adjustments of non-tariff trade barriers, like unwarranted technical regulations. Phasing out export taxes should also be a priority, especially as other public revenue sources can be mobilised. The one-stop shop for foreign trade could be further enhanced by ensuring interoperability and data exchange between customs and other agencies to cover all export-related procedures. Continuing to work towards the full implementation of free trade agreements can also open even more markets to Argentinian producers and expose domestic producers to the discipline of international competition. Reducing remaining foreign equity ceilings can help to increase Argentina’s attractiveness for foreign direct investment, which has fallen short of other emerging-market economies (Figure 3). 

Figure 3. Argentina needs to increase its attractiveness to FDI 

FDI inward positions, 2023 

Improving infrastructure, skills and judiciary efficiency 

Further improvements in competitiveness could result from reforms to tackle low judicial efficiency, by investing in digital skills and infrastructure and promoting alternative dispute resolution schemes. Streamlining administrative procedures at the local level can help to accelerate digital infrastructure deployment and encourage digitalisation. Strengthening the integrity of the public sector, for example by updating the Public Ethics Law and ensuring systematic consultations of the Anticorruption Office by government agencies, can support ongoing efforts in the fight against corruption. 

Much has been achieved in a short period of time, but only by maintaining the current reform momentum can Argentina live up to its economic potential and lift incomes in a durable manner. 

For more information, please visit the OECD’s Economic Snapshot of Argentina webpage.

References

OECD (2025), OECD Economic Surveys: Argentina 2025, https://doi.org/10.1787/27dd6e27-en, OECD Publishing, Paris.