Economic studies


Population 43,132 million
GDP 14 616 US$
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major macro economic indicators

  2014/15 2015/16



2017/18 (f)
GDP growth* (%) -2.5 2.6 -2.0 2.0
Inflation (yearly average) (%) 38.8 28.4 43 25.6
Budget balance** (% GDP) -4.0 -5.6 -5.8 -6.1
Current account balance (% GDP) -1.4 -2.7 -2,8 -2.7
Public debt** (% GDP) 43.6 52 51.3 49.4


(e) Estimated (f) Forecast


  • Natural agricultural, energy and mineral resources
  • Improvement in the business environment  
  • Educational level higher than the regional average 
  • Qualified labour force 
  • Return of the country onto the international markets


  • Dependency on agricultural commodity prices 
  • Insufficient capital investment in energy and transport 
  • Inflation rate still high


Increase of growth driven by capital investment and exports

In the first quarter of 2017, real GDP growth achieved 1.1 % QoQ (after 0.7 % in 4Q16), driven by investment and exports. These drivers are expected to continue in the second half of the year. Public capital spending has spurred investment in infrastructure, and private investment has benefited from the renewed investors’ interest in the country since the liberalisation of capital controls. Inflows of foreign capital are expected in the energy and manufacturing industry sectors (automotive in particular) and real estate. State-owned businesses also benefit from more favourable access to credit on foreign markets in order to increase their production capacities. In addition, exports are expected to grow, thanks to exceptional harvests (soybeans, wheat); meanwhile, exports of manufactured goods (+ 8% YoY in the first quarter) increase their share of Argentina's export basket. Nevertheless, the economic slowdown of key partners (Brazil in particular) could affect foreign trade. Private consumption should benefit from the slowing inflation, but it suffers from the Macri restrictive fiscal policy. Inflation, which exceeded 40% in 2016, remains high and above the central bank's target (21.9% a.y. in 12 months accumulated until June/17), because of the recent depreciation of the Argentine peso and the rise in water and energy prices, related to the decline in subsidies for these goods.


The government deficit is unlikely to recover in the short term 

Despite budgetary adjustment measures of 2016, which consisted of eliminating subsidies on the price of electricity, gas and transport and reducing total payrolls in the public sector, the public deficit should increase. Expenditures should not reduce because of the elimination of taxes on agricultural products (with the exception of soya) intended for export, and the increase of infrastructure and pension expenditures. In the run-up to the legislative elections in October 2017, the government focuses on the falling popularity of president Macri, and its priority now appears to be turned towards the promotion of consumption, to the detriment of the budgetary objectives announced in the early part of the mandate. The government thus announced an increase in the minimum wage of 24 %, which will be implemented in three stages between now and July 2018.


Deterioration in current account

The current account deficit should not improve as a result of the dynamism in imports (capital equipment in particular) driven by the increase in capital investment. Furthermore, the country remains dependent on energy imports as result of the lack of investment in this sector, despite the abundance of natural resources (oil and gas). Agricultural exports (soya, maize and corn), which represent almost 60 % of the total export sales, should nevertheless increase. Since 2016, the latter have benefited from the elimination of taxes and export quotas. However, the trade balance has been in deficit in the first quarter of 2017, because of the weakness of the Brazilian economy (which receives 18 % of total exports) and of the US economy (6 % of exports). The trade surplus should therefore reduce in 2017.  The return of investors' confidence in the country should furthermore contribute to the rise in FDI, which grew by 28 % YoY in the first quarter.


Improvement in the business environment

Elected in November 2015, the government of President Mauricio Macri is making every effort to reduce the economic distortions and to put the economy on the path to sustainable growth. However, in view of the extent of the poor economic management by the previous government, the process of adjustment involving austerity measures (reductions of subsidies in particular) combined with the high inflation rate caused by the devaluation of the peso have contributed to the fall in the popularity of the President. Protest movements raised, as in the short term, the population is severely affected by these measures without perceiving their benefits (9.2 % of unemployment in the first quarter of 2017 for example). In order to give the greatest possible chance to the right-wing coalition, Frente Cambiemos, to obtain additional seats in the Congress during the legislative elections in October 2017, the government is concentrating more effort on the revival of private consumption.

The business environment has improved sharply. The elimination of barriers to importing and exporting, and the resolution of the conflict with the vulture funds, are reinforcing the Argentine institutional framework and henceforward contributing to attracting foreign investment.



Last update: June 2017



The most common payment instruments in local commercial transactions are cash, Bank transfer and Cheques.  In case of default, post-dated cheques -as credit payment instruments- represent an executable legal document which facilitates a fast track legal proceeding.


For international commercial transactions, the most common payment instrument is Bank transfer via SWIFT. Currently, there exist various foreign exchange controls and, as a general rule, all transfers of foreign currency to and from Argentina are subject to many restrictions and requirements set forth by the applicable foreign exchange authorities. Importers require an Import Prior authorization (DJAI) from the Argentine Federal Tax Authority (AFIP) to get the fund transfer approval from the Argentine Central Bank. Payments to related foreign companies are usually denied.



Debt collection



Amicable phase:

The amicable collection and an out-of-court settlement are always preferable to legal actions. Negotiations are focussed on the payment of the principal, plus any contractual default interest that may be added and accepted by the buyer.  However, debt collection in this phase is usually subject to write-offs and payment plans and accrued interests are rarely recovered for foreign currency debts. The main instrument to execute the agreement in this stage is a notarized acknowledgement of debt or a payment plan, which is an instrument that may be executed through an executory judicial proceeding. Such document has to be signed by creditor & debtor and must be notarized. If possible, the inclusion of guarantees (such as a promissory note) is also advisable. In this stage, costs and fees incurred are borne by each party, respectively.


Legal proceedings:

Argentina is a federal republic organized into 24 jurisdictions: 23 provinces and the Autonomous City of Buenos Aires (federal district). Each jurisdiction establishes its own court structure and organisation within its territory and its rules of procedure.


The Argentine judicial system is divided into two parallel judicial systems: federal courts (organised by the federal government) and provincial courts (organised by each province or federal district). The supreme judicial power of Argentina is vested in the National Supreme Court of Justice.


In principle, Argentine courts have jurisdiction if (i) defendant is addressed in Argentina, (ii) the place of performance of any of the obligations is located in Argentina, or (iii) Argentine courts have been chosen as the applicable forum (subject to certain restrictions). With respect to debtors addressed abroad, there is jurisdiction only to the extent that the debtor has assets in Argentina (in which case the insolvency proceedings will only involve such assets) or when its principal place of business is in Argentina.


Argentine regulations contemplate alternative dispute resolution methods. In some jurisdictions compulsory pre-trial mediation proceedings have been determined. The agreement reached between the parties must be signed by the mediator, the parties and any others participants. If no agreement is reached, creditor may initiate legal proceedings.


The Argentine Civil and Commercial Code of Procedure (modified and updated in the year 2015) classifies proceedings into two types depending on their purpose:fact-finding or ordinary (“juicio ordinario”)andexecutory or fast-track (“juicio ejecutivo”). There are other types of proceedings which apply only to particular cases.


Ordinary proceedingsinclude different stages. Generally, such proceedings are initiated by the parties submitting pleadings, followed by a stage in which evidence is provided and assessed. Subsequently, the court issues its decision and, eventually, parties may appeal said judgment provided certain conditions are met.


Executory processesare simplified and prompt proceedings that mainly consist of claimant’s request of the execution of debtor’s assets to obtain payment of a debt. Executory proceedings applies when creditor has documents known as executory titles (“títulos ejecutivos”), such as public instruments, private instruments signed by the concerned person and legally acknowledged, judicial confessions of debts, bills of exchange, promissory notes, checks or credit invoices. The evidence stage is avoided, there’s no need to prove the debt (the executor titles are enough).


Plaintiff’s petition must basically contain a memorandum of the facts in Spanish, the claimed amount, the documentary evidence supporting the claim and other means of evidence and include the signature of an attorney. All documents used as evidence in court must be drafted in Spanish (or translated into Spanish by an official sworn translator) prior to their being admitted by a court.


Costs involved in judicial proceedings usually include court tax (equal to 3 % of the amount in dispute to be paid by claimants upon commencing the proceeding), lawyers’ fees and experts’ fees. In principle, the prevailing party is entitled to recover its costs, including attorneys’ fees. However, the court may determine otherwise.


Insolvency proceedings:


(i) Reorganization proceeding (“concurso preventivo”): A reorganization proceeding may only be initiated voluntarily by an individual or entity who must submit proof of its inability to pay its debts. Debtor must file a petition to the court requesting relief under the Bankruptcy Law. The court will appoint a trustee. All creditors must file evidence of their proof of claim with the trustee (“verificación de crédito”). Debtor must submit a proposal for reorganization and must obtain their approval. If the proposal is not approved by the required majorities, debtor bankruptcy may follow.


(ii) Bankruptcy (“quiebra”): A bankruptcy proceeding may be initiated upon failure of a reorganization proceeding and may also be initiated either voluntarily (by debtor) or involuntarily (by debtor’s creditors request).

Unlike reorganization, debtor is removed from the administration of its assets and a trustee is appointed in order to preserve and administer debtor’s property. Hence, all payments to creditors and debtor must be made through court. As in reorganization proceedings, all claims and proceedings against debtor are automatically stayed as from the date of the order that determines debtor’s bankruptcy. All creditors must submit their proof of claims for payment. Once the assets available and the amounts owned to each creditor are determined, the trustee liquidates the assets and proceeds with the distribution to creditors. Then the bankruptcy proceeding concludes and debtor is discharged. 

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