Argentina economic landscape shows investment growth and SME struggles

Argentina is experiencing a divergence between large-scale foreign investment and the stability of small and medium-sized enterprises (SMEs). Senator Ezequiel Atauche credited the Regime of Incentives for Large Investments (RIGI) with attracting billions of dollars in foreign capital, facilitating projects such as a lithium plant in Catamarca, a copper plant in Salta, and a planned lithium technology pilot plant in Jujuy for 2027.

Conversely, the SME sector in Jujuy faces a difficult outlook. Luis Alonso, head of the Union of Entrepreneurs of Jujuy, reported declining sales, business closures, and challenges in maintaining employment. Alonso noted that while inflation has slowed, the lack of real economic activity continues to impact the region, mirroring trends in Salta and Tucumán. He highlighted that since 2023, the country has seen the loss of over 230,000 jobs and the closure of 16,000 companies.