Argentina: Rise as an investment hero under Milei inspires Germans!

Argentina: Rise as an investment hero under Milei inspires Germans!

Argentina has developed into a stable investment location under President Javier Milei since the end of 2023. The first steps to improve the economic environment and the business climate are already having positive effects on investors. More and more foreign companies, especially German companies, are showing interest in Argentina. Ignacio Aquino of PwC Argentina reports an increase in discussions and takeovers, while Patricio Rotman of Finanzas & Gestión confirms that the number of multinationals exiting the country is decreasing.

In a recent report by the Daily newspaper It is clear that confidence in the Argentine market is growing. The companies that want to invest more include well-known German companies such as VW, Bosch and Siemens. A survey by the AHK and EY shows that 47% of the companies surveyed are planning additional investments for 2025 and 53% expect an increasing need for workers.

Economic conditions and challenges

Germany currently accounts for 2.7% of foreign investments in Argentina. The main recipients of these capital inflows are the automotive industry, mining, chemical industries and mechanical engineering. The reports WKO, that the trade balance between Argentina and Germany has a deficit of $1.841 billion. Argentine exports to Germany consist mainly of beef, cowhide and soy.

Despite the positive developments, German companies also face challenges: infrastructure bottlenecks and inadequate logistics remain significant hurdles. However, 63% of companies expect a quick payback on their investments. In addition, 56% reported an increase in sales in the last financial year, and 77% expect further growth in 2025.

Political stability and economic forecasts

Stability under President Javier Milei, who continues to enjoy broad popular support, contributes significantly to Argentina's positive economic outlook. Meanwhile, economic growth of over 5% is forecast for 2025, showing a significant recovery. A key aspect of this recovery is the fight against inflation, which was reduced from over 25% at the end of 2023 to 2.7% in December 2024.

The political environment is also promising, with nationwide midterm elections scheduled for fall 2025, which is expected to see growth for Milei's party. The foreign exchange restrictions remain in place, but a gradual lifting is planned for 2025. In addition, many import restrictions have been largely lifted, which further improves business conditions.

Overall, Argentina continues to position itself as an attractive investment location that can expect increasing trust from international companies. The current mood in the country shows that 57% of the population assess their personal economic situation better than last year, which underlines the positive development.