Reducing the tax burden and strengthening investment in infrastructure are two key pillars to improve the competitiveness of the Argentine economy. According to a report from the Institute of Studies on Argentine and Latin American Reality (IERAL), progress in these areas could alleviate the pressure on the productive sector and generate a more favorable environment for investment and growth.
The study highlights that the high fiscal pressure in the country discourages formality and reduces competitiveness for local companies compared to their international peers. This could improve productivity, attract capital, and strengthen long-term economic development.
Although the discussion about tax reform and investment in infrastructure is not new, the current context of falling activity and the need for growth stimuli brings the topic back to the forefront of the economic agenda.
At the same time, the infrastructure deficit, especially in transportation and logistics, increases costs and limits the expansion of strategic sectors. To reverse this situation, the report suggests a scheme that combines a gradual reduction of taxes with a sustained investment plan in infrastructure.
