Argentina has gone through a period of economic stagnation and will face challenges in 2016; however, there are high hopes that it will become a financially stable and attractive foreign investment opportunity within the next two years.
Argentina has gone through a period of economic stagnation and
will face challenges in 2016; however, there are high hopes that it
will become a financially stable and attractive foreign investment
opportunity within the next two years. As a member of the G-20,
Argentina can easily reach other participants and also acts as a
regional voice for Latin America.
In August, Argentina brought in a new Civil and Commercial Code,
which affects civil and commercial relations of natural and legal
persons, and the entire local tax system. Changes are also expected
for taxpayers' domicile and 'one-person corporations'
(SAU, by its acronym in Spanish). This highlights the need for a
comprehensive tax reform that adapts national and provincial
law.
Late last year, Argentina elected in President Mauricio Macri, who
expressed his intentions to introduce multiple reforms that will
help revive the economy, including:
- Cuts in public spending to reduce inflation and regain investor confidence
- Increasing competitiveness by promoting specific sectors and regions
- Driving innovation and adopting new technologies
- Encouraging the creation of new companies and jobs.
The National Institute of Statistics and Census of Argentina
supports the government and says that in order to achieve economic
progress in 2016, the focus needs to be on GDP, foreign trade,
reducing poverty and generating employment.
Argentina is rich in resources, has a well-educated population and
a more equal income distribution than most of its Latin American
peers. However, as the business landscape is constantly changing,
companies operating in Argentina are advised to have strong local
understanding to navigate the diverse and complicated terrain, and
make the most of available opportunities.
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