Argentina ranked ninth among the 10 hardest countries in the world to do business in, bogged down by the regulatory and tax hurdles foreign companies face when operating in the country, according to TMF Group’s global index.
Even so, the report saw room for that to turn around over the medium term, on the back of stronger incentives for foreign investment, the government’s push for a balanced budget and the passage of labor reform.
The ninth-place ranking is a step back from 2025, when Argentina came in 11th. It comes even with President Javier Milei’s strong push on deregulation, foreign-investment incentives and cutting red tape.
The reason is that, beyond each country’s macroeconomic appeal, the index measures the operating cost of complying with regulatory frameworks that “hold back the growth of both local companies and international investors.”
That points to “the persistence of structural barriers that international companies run into when operating in the country,” according to TMF Group.
One of the issues TMF Group flagged in Argentina is the limited digitalization of operating processes, which often leaves legacy requirements — in-person filings, manual certifications — stacked on top of newer ones.
By contrast, the jurisdictions ranked easiest to do business in — Denmark, Hong Kong and the Netherlands — stand out for solid digital infrastructure and a predictable regulatory environment, the report said.
Constant legal updates force companies to constantly revisit their local processes, “which raises operating risk and reinforces the need for specialized local expertise.”
“The business environment remains demanding, marked by unpredictable regulatory changes and an administrative burden that is expected to grow over the next year,” the report said.
A window of opportunity
Despite the slide in the rankings, most experts are upbeat about the changes Milei is introducing. Jorge Sodano, TMF Group’s country head for Argentina, Chile, Paraguay and Uruguay, said: “Argentina’s position in this ranking comes at a turning point.”
The reforms the Argentine government is pushing on deregulation, currency liberalization and administrative simplification “are laying the groundwork for a much more predictable and competitive business environment,” he said.
For Sodano, it’s about timing. “Argentina today represents a prime entry point before the improvement in the investment climate fully shows up in the rankings,” he said.
Marcelo Abad, director of the Investment Diploma program at Universidad Austral, told the Herald that in 2026 “there is a marked improvement in macroeconomic expectations and in pro-market sentiment compared with previous years.”
He pointed to “the slowdown in inflation and the drop in country risk, which make it easier for capital to come in and for projects to be planned.”
Even so, he acknowledged that “significant weak spots remain, tied to the level of activity, financing and medium-term regulatory uncertainty.”
Abad also said the lack of investment in ports, railways and highways — a consequence of the halt in public-works spending — could create “a major bottleneck” for the expansion driven by the country’s natural resources.
