Argentina’s economy continues to present significant challenges for U.S. businesses seeking to export to this market. Although the International Monetary Fund (IMF) projects economic growth of 5.5 percent in 2025, it will take time to fully address the macroeconomic imbalances that have persisted over the past decades. While inflation is declining, it remains high. As of December 2024, the YOY inflation rate stood at 117.8 percent, leaving Argentina with one of the highest inflation rates in the world.

Furthermore, a large portion of the population lives below the poverty line. The National Institute of Statistics and Censuses (INDEC) reports that 38.1 percent of Argentine families were living in poverty in the second half of 2024. While this marks a decrease from the peak seen in early 2024 (52.9 percent), the figure remains high, with 17.9 million people still affected by poverty.

Argentina’s current program with the IMF requires fiscal discipline and reserves accumulation to receive disbursements, which are crucial for mitigating the impacts of economic volatility. Since taking office, President Milei has reduced public spending to trim the fiscal deficit and meet IMF targets. As of April 2025, the government successfully negotiated a new $20 billion agreement with the IMF with an initial disbursement of $12 million, representing 60 percent of the total program amount.

Global events also continue to impact the Argentine market. The Russian invasion of Ukraine disrupted international logistics services and impacted agriculture and energy commodity prices. Other business challenges include systemic corruption, a lack of long-term regulatory coherence, weak intellectual property rights protections, inefficient legal processes, poor infrastructure, costly labor, and limited access to financing.

Although the government is committed to addressing these obstacles, it has encountered difficulties in securing support from both the National Congress and the provincial governments. These challenges have hindered the implementation of key economic deregulation measures. In 2025, Argentina will hold mid-term legislative elections, and should the ruling party secure sufficient support in Congress, a broad range of reforms in the economic, financial, fiscal, administrative, pension, tariff, healthcare, and social sectors, among others, are expected to advance.