VoIP for Enterprise TMC

Argentina: Business environment at a glance

September 30, 2006
Argentina: Business environment at a glance. Check it out:
(EIU Viewswire Via Thomson Dialog NewsEdge) COUNTRY VIEW

FROM THE ECONOMIST INTELLIGENCE UNIT

Policy towards private enterprise and competition

2006-07: Contract renegotiations with privatised utilities make slow progress. Further state interventionism through price controls and wage renegotiations. Incentives for investment and subsidised credit lines for local investors.

2008-10: Distortions from interventionist policies impair efforts to restore confidence in institutions and propertyrights.

Policy towards foreign investment

2006-07: Welcoming of foreign investment, tempered by encouragement of increased domestic ownership.

2008-10: As foreign direct investment (FDI) will be critical to long-term growth, policy will focus on broadening inflows.

Foreign trade and exchange controls

2006-07: Targeting of an unofficial exchange rate weaker than Ps3:US$1. Trade policy will be occasionally used as an anti-inflationary tool. Occasional resort to protectionism against Brazil. Control on short-term capital inflows.

2008-10: Emphasis on improving export finance and infrastructure; deepening of subregional integration within the Mercado Comun del Sur (Mercosur, the Southern Cone customs union).

Taxes

2006-07: The system to remain complex. Financial transactions tax and export levies will persist, but rates may be reduced.

2008-10: An increased likelihood that the rates of temporary taxes could be reduced. Although a comprehensive tax reform is unlikely, the government will attempt to change the tax structure towards a major share of direct taxes in tax revenue.



Financing

2006-07: Although lending will recover, the availability of investment finance will be limited.

2008-10: Availability of long-term credit will continue to increase gradually from a low base, but lingering distortions in financial markets will restrain expansion. Slow progress in improving the lending practices of state-owned banks.

The labour market

2006-07: Union influence will inhibit government attempts to curb wage rises, but informal-sector wages to remain low.

2008-10: Dollar cost of labour rises. Possible re-examination of severance costs and payroll taxes. Some skills shortages.

Infrastructure

2006-07: Demand management and state intervention to avert energy shortages. Interim tariff deals struck with utilities.

2008-10: New investments set to improve energy supply and to upgrade export infrastructure.

Copyright 2006 Economist Intelligence Unit


Related Tags: , , , , ,

Email Author Feedback

See this page in TechnoratiCosmosbook mark Argentina: Business environment at a glance in del.icio.usDel.icio.usArgentina: Business environment at a glance to Slashdot.comSlashdotSubmit Argentina: Business environment at a glance to Digg.comDiggSubmit Argentina: Business environment at a glance to BoingBoing.netBoingBoingBookmark Argentina: Business environment at a glance in FurlFurlBookmark Argentina: Business environment at a glance in SpurlSpurl

Listed below are links to sites that reference Argentina: Business environment at a glance:

Trackback Pings

TrackBack URL for Argentina: Business environment at a glance:
http://blog.tmcnet.com/cgi-bin/mt3/mt-tb.fcgi/28847

Comments to Argentina: Business environment at a glance