ARGENTINA COUNTRY ECONOMIC MEMORANDUM - A new growth horizon - Improve fiscal policy, open markets, and invest in human capital

Jul 19, 2026

Argentina’s growth has stalled amid macroeconomic volatility driven by procyclical fiscal policy, while public policy and constraints on private investment further weaken performance. Trade integration is limited by disappointing export outcomes and high trade costs and frictions, requiring a gradual transition toward greater openness. Inclusive growth depends on upgrading human capital as labor markets show precariousness, low productivity, and skill mismatches amid changing work demands.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages146

Reading Time6 h 8 min

Executive Summary

Abbreviations

1 An Overview of Argentina’s Economic Performance

1.1 Growth has stalled

1.2 Macroeconomic volatility and procyclical fiscal policy

1.3 Public policy constrains private investment

1.4 Emissions decoupling and emissions intensity

1.5 Policy recommendations

2 Enhancing Trade Integration for Competitiveness and Growth

2.1 Export performance is disappointing

2.2 Trade costs and frictions limit export potential

2.3 Toward a gradual process of trade integration

2.4 Policy recommendations

3 Upgrading and Using Human Capital for Inclusive Growth

3.1 Labor market: precariousness, low productivity, modest skills

3.2 Future of work changes skill demand

3.3 Human capital needs to adapt

3.4 Policy recommendations

4 Biotechnology and Automobiles

4.1 Biotechnology and skill mismatch

4.2 Automobiles and macroeconomic instability

Authorized ARGENTINA COUNTRY ECONOMIC MEMORANDUM Public Disclosure Pub lic Disclosure Authorized Pub lic Disc losure Authorized Pub lic Disclosure Authorized A new growth horizon Improve ﬁscal policy, open markets, and invest in human capital © 2024 The World Bank Group 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; [Internet: www.worldbank.org](Internet: www.worldbank.org) This work is a product of the staff of The World Bank Group with external contributions.“The World Bank Group” refers to the legally separate organizations of the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA) . The World Bank Group does not guarantee the accuracy, reliability or completeness of the content included in this work, or the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the organizations of the World Bank Group, their respective Boards of Executive Directors, and the governments they represent. The contents of this work are intended for general informational purposes only and are not intended to constitute legal, securities, or investment advice, an opinion regarding the appropriateness of any investment, or a solicitation of any type. Some of the organizations of the World Bank Group or their affiliates may have an investment in, provide other advice or services to, or otherwise have a financial interest in, certain of the companies and parties named herein. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of any of the organizations of The World Bank Group, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank Group encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given and all further permissions that may be required for such use (as noted herein) are acquired. The World Bank Group does not warrant that the content contained in this work will not infringe on the rights of third parties, and accepts no responsibility or liability in this regard. All queries on rights and licenses should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; e-mail: [pubrights@worldbank.org](pubrights@worldbank.org). COUNTRY ECONOMIC MEMORANDUM A new growth horizon Improve fiscal policy, open markets, and invest in human capital November 2023 Contents Acknowledgments vii Executive Summary 1 Abbreviations 11 1 An Overview of Argentina’s Economic Performance 14 1.1. Growth has stalled 14 1.2. Macroeconomic volatility, influenced by a procyclical fiscal policy, constrains growth 20 1.3. Public policy constrains private investment, hindering growth 26 1.4. Argentina has decoupled emissions from growth, but emissions intensity is a challenge 37 1.5. Policy recommendations 40 References 42 2 Enhancing Trade Integration for Competitiveness and Growth 44 2.1. Export performance is disappointing 44 2.2. Trade costs and frictions limit Argentina’s export potential 50 2.3. Towards a gradual process of trade integration 61 2.4. Policy recommendations 74 R

FAQs

What are the main drivers of Argentina’s stalled growth discussed in the memorandum?

The memorandum links weak growth to macroeconomic volatility fueled by procyclical fiscal policy and to public policy constraints that hinder private investment.

How does the document explain Argentina’s trade integration and competitiveness challenges?

It highlights disappointing export performance and points to trade costs and frictions that limit export potential, recommending a gradual integration process.

Why is human capital reform central to inclusive growth in the report?

The report notes labor market precariousness, low productivity, and modest skill levels, arguing that the future of work requires skills upgrades and adaptation of human capital.

Jul 19, 2026

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