Regarding policies for production transformation, Argentina has undertaken a first series of structural reforms aimed at stabilising the economy and fostering long-term growth since December 2023. A fiscal consolidation and the cessation of monetary financing have significantly reduced inflation since 2024. Stabilisation efforts included targeted fiscal adjustments to enhance public spending efficiency, notably through discretionary cuts in capital expenditure. As a result, Argentina recorded primary budget surpluses almost every month in 2024 – the first time since 2010. Labour market reforms were introduced through the “Bases Law,” approved in June 2024, aiming to balance formal job creation with worker protection. Key changes include the removal of mandatory reinstatement after dismissal disputes and extended probationary periods – up to one year for small firms. To further boost productivity, Argentina has streamlined business regulations and reduced trade barriers, leading to notable improvements in the business environment. The energy sector has emerged as a strategic pillar of production transformation, with developments in the Vaca Muerta shale formation and new pipeline infrastructure positioning Argentina as a future net energy exporter. In 2024, the sector began generating trade surpluses.
Regarding policies for public financing mechanisms for production transformation, Argentina has introduced several reforms. A key component is the ongoing tax reform, which includes measures to reduce corporate tax compliance costs. In September 2024, the government launched a preferential regime for large-scale investment projects, offering tax, customs, and foreign exchange incentives for investments exceeding USD 200 million, guaranteed for 30 years. The broader fiscal adjustment, combined with significant exchange rate valuation effects, has led to a substantial reduction in gross federal government debt as a share of GDP. These reforms are particularly relevant given Argentina’s historically low levels of foreign direct investment, which remain concentrated in highly protected manufacturing sectors. By improving macroeconomic stability and incentivising large-scale investment, Argentina is laying the groundwork for a more dynamic and diversified production base.
In terms of international partnerships for production transformation, Argentina has established co‑operation agreements with a wide range of actors. In co‑operation with Japan, the KT+ Project 2025‑27 offers technical assistance, training and impact measurement tools to promote MSME competitiveness in Argentina. The country also leads the Fund for South-South and Triangular Cooperation (FO.AR), which enables relevant expertise exchanges in fields such as agro-industry, technology innovation and health. The second phase of the triangular co-operation project with Germany, Kenya and the United Republic of Tanzania was launched in November 2024. The initiative brings together Argentina’s INTA, Kenya’s KALRO, Tanzania’s TALIRI and Germany’s GIZ to strengthen food security, promote sustainable livestock production and deepen bilateral ties.