Argentina's economy strains under stagnant growth, pymes crisis and large‑scale investment push

Argentina faces a prolonged period of structural stagnation. A report by the Institute of Argentine and Latin American Reality (IERAL) highlights a 15‑year plateau in activity, employment and wages in Mendoza province, noting declining wine consumption, waning oil revenues and the broader national recession.

At the national level, industrial leader Diego Coatz warned that despite macro‑economic stability, the industrial sector and small‑and‑medium enterprises (pymes) are in sharp decline. He said the economy “real is falling” and that industry output is down nearly 6 %, with commerce and construction also weak. Coatz argued that stability must be paired with growth‑generating policies to support pymes and prevent further job losses.

The government’s RIGI (Regime of Incentives for Large Investments) scheme has approved 20 projects worth US$43.5 billion, targeting mining, oil, gas and renewable energy across many provinces. President Javier Milei pledged further approvals and a “Super RIGI” to attract multi‑billion‑dollar projects, including a potential new nuclear reactor.

A consultancy report from Aleph Energy stresses that Argentina’s resource endowment—Vaca Muerta, lithium and copper—is no longer the issue; the challenge is turning those assets into production, exports and sustained jobs. Infrastructure, financing and clear regulations are cited as critical bottlenecks.

Regional context includes Peru’s mining‑permit reform proposal, which seeks to cut approval times from seven to three years through a digital “single‑window” system, and Uruguay’s Industry, Energy and Mining minister Fernanda Cardona promoting solar parks, forest‑industry investment and expanded broadband to spur nationwide growth.