Domestic and foreign companies are going to invest $14 billion in Argentina this year, an indication that the business-friendly reforms of President Mauricio Macri are finally yielding results.
Juan Procaccini, who heads the country’s investment promotion agency, told Reuters there is an additional $12.5 billion worth of investments in projects that have not yet been announced.
Foreign firms have announced investments worth more than $33 billion since Macri became president, with the most coming from companies based in the United States, Germany, Canada, Spain, and Brazil.
Total investment, including local companies and joint investments between Argentine and foreign companies, has totaled $58.6 billion, according to Reuters.
The rising inflow of funds underscores the point that Argentina is no longer a financial pariah. It is rather becoming “the Paris of South America”, because the country has been chosen for hosting a series global events.
Last week, Argentina hosted the World Economic Forum’s Latin America summit. It is going to hold G20 summit next year. And before that, in December, the World Trade Organization will organize a summit in the country.
The Macri administration is laying the groundwork for a fundamental shift in Argentina’s stance toward business and trade. He ended export tariffs, cut income taxes, allowed the currency to float freely, and made peace with bondholders.
Today, although inflation is still soaring, jobs are being created and businesses are sprouting slowly but steadily.
Among the companies that announced investments in the country are Coca Cola, Vale, Pan American Energy, Santander, and Royal Dutch Shell.