ARGENTINA

A rgentina’s economic freedom score is 51.0, making its economy the 144th
freest in the 2023 Index. Its score is essentially unchanged from last year.
Argentina is ranked 27th among 32 countries in the Americas region, and its
overall score is below the regional and world averages.

WORLD RANK: REGIONAL RANK: Aggravated by corruption and political interference, the lack of judicial
144 27 independence has severely eroded limits on government. Leftist spending
measures and price controls distort markets, and government interference
ECONOMIC FREEDOM STATUS: still hobbles the financial sector. Fading confidence in the government’s
MOSTLY UNFREE determination to promote or even sustain open markets has discour-
aged entrepreneurship.

ECONOMIC FREEDOM SCORE

51.0
0 50 60 70 80 100

REGIONAL AVERAGE
58.6 59.3 WORLD


(AMERICAS) AVERAGE

HISTORICAL INDEX SCORE CHANGE (SINCE 1995): –17.0

RECENT FREEDOM TREND QUICK FACTS

60
POPULATION: UNEMPLOYMENT:
52.3 52.2 53.1 52.7
51.0 45.8 million 11.5%
50.1
50 GDP (PPP): INFLATION (CPI):
$1.1 trillion 48.4%
10.2% growth in 2021
FDI INFLOW:
5-year compound
40 $6.5 billion
annual growth –0.3%
$23,597 per capita PUBLIC DEBT:
80.9% of GDP
30
2021 data unless otherwise noted. Data compiled as of September 2022
2018 2019 2020 2021 2022 2023

BACKGROUND: Argentina is South America’s second-largest country. It has vast agricultural and mineral
resources, a highly educated population, and a long history of political and economic instability. Peronist
President Alberto Fernández and Vice President Cristina Fernández de Kirchner are up for reelection in
October 2023. The center-right is divided between the Together for Change and Freedom Advances coali-
tions. Rising inflation and record-low sovereign bonds, fueled by statist policies and out-of-control spending,
have prolonged the effects of the 2020 debt default crisis. In 2022, the IMF approved a $44 billion Extended
Arrangement. Cash-strapped Argentina has also received multimillion-dollar loans from multilateral institutions.

36 2023 Index of Economic Freedom

12 ECONOMIC FREEDOMS | ARGENTINA

RULE OF LAW GOVERNMENT SIZE

100 100

80 80

70 70

60 60

50 50

34.6 56.8 42.8 66.9 53.9 33.6

0 0
Property Judicial Government Tax Government Fiscal
Rights Effectiveness Integrity Burden Spending Health

The overall rule of law is weak in Argentina. The
country’s property rights score is below the world
average; its judicial effectiveness score is above
the world average; and its government integrity
score is below the world average.
The top individual and corporate tax rates are,
respectively, 35 percent and 35 percent. The
tax burden equals 29.4 percent of GDP. Three-
year government spending and budget balance
averages are, respectively, 39.2 percent and –5.8
percent of GDP. Public debt equals 80.9 percent
of GDP.


REGULATORY EFFICIENCY OPEN MARKETS
100 100

80 80

70 70

60 60

50 50

55.5 55.1 36.5 61.2 55.0 60.0

0 0
Business Labor Monetary Trade Investment Financial
Freedom Freedom Freedom Freedom Freedom Freedom

Increased government regulatory interference
undermines efficiency and productivity growth.
Establishing a business remains time-consum-
ing, and getting necessary permits is costly.
Reforms of the rigid labor market have long been
stalled. The most recent available inflation rate is
48.4 percent.
The trade-weighted average tariff rate is 11.9 per-
cent, and more than 140 nontariff measures are
in force. Heavy state involvement in the economy
slows the investment approval process. The state
interferes in the financial sector, and financial
account transactions are subject to limits.

The Heritage Foundation | heritage.org/Index 37