Country Overview
The quality of Argentina's infrastructure procurement processes improved significantly helping to bring better value for money and quality outcomes from investment. Regulatory reforms have also led to a marked improvement in the ease of starting a business, encouraging investment and competition from new suppliers. However, the impact of the COVID-19 pandemic and the continued threat of a sovereign debt crisis present key challenges for Argentina's ability to deliver future infrastructure projects.
See Full Overview Data
GDP per capita
9,888 USD
Population
45.1 million persons
Infrastructure quality
68.3 (0-100 best)
Infrastructure investment
2.3% of GDP
Private infrastructure investment
525.9 5-year average, USD millions
Infrastructure gap
1.5% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

43
6
52.4
Contender
60
-
50.3
Aspiring
52
2
62.3
Aspiring
46
25
69.1
Contender
30
28
80.9
Top performer
36
8
36.7
Contender
76
4
12.9
Emerging
73
2
19.0
Emerging

Metric Overview

Strengths

Cost to start a business

According to the World Bank, the average cost of starting a business in Argentina is 5% of income per capita, down from 23% in 2013. Regulatory reforms and public funding aimed at promoting entrepreneurial projects have helped reduce establishment costs.

Financial stability

Despite an ongoing economic recession and the increasing risk of a sovereign debt crisis, financial stability in Argentina has been satisfactory. Basel indicators like the minimum capital adequacy ratio and the domestic credit-to-GDP gap are at satisfactory levels. The long-term impacts of the COVID-19 pandemic is a concern.

Transparency in public procurement

Argentina's public procurement notices are made available online and tender documents transparently detail procurement procedures. The transparency of the process encourages more participation and competition, which can drive value for money.

Cost to start a business

According to the World Bank, the average cost of starting a business in Argentina is 5% of income per capita, down from 23% in 2013. Regulatory reforms and public funding aimed at promoting entrepreneurial projects have helped reduce establishment costs.

Financial stability

Despite an ongoing economic recession and the increasing risk of a sovereign debt crisis, financial stability in Argentina has been satisfactory. Basel indicators like the minimum capital adequacy ratio and the domestic credit-to-GDP gap are at satisfactory levels. The long-term impacts of the COVID-19 pandemic is a concern.

Transparency in public procurement

Argentina's public procurement notices are made available online and tender documents transparently detail procurement procedures. The transparency of the process encourages more participation and competition, which can drive value for money.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Upper middle income country average

Financial markets:
Financial stability

Opportunities to Grow

Market sounding and/or assessment

According to the World Bank, there is no formal requirement for a market sounding process. Adding one could allow the government to determine if there is an interest from investors and lenders to provide commercial financing for projects.

Dealing with construction permits

According to the World Bank, it takes an average of 318 days to deal with construction permits. As most infrastructure projects require construction approval, expediting this process could encourage investment in infrastructure and help reduce delays.

Stocks traded

At 0.9% of GDP, Argentina’s value of stocks traded is far lower than the Upper Middle Income Countries’ average of 26% of GDP. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Market sounding and/or assessment

According to the World Bank, there is no formal requirement for a market sounding process. Adding one could allow the government to determine if there is an interest from investors and lenders to provide commercial financing for projects.

Dealing with construction permits

According to the World Bank, it takes an average of 318 days to deal with construction permits. As most infrastructure projects require construction approval, expediting this process could encourage investment in infrastructure and help reduce delays.

Stocks traded

At 0.9% of GDP, Argentina’s value of stocks traded is far lower than the Upper Middle Income Countries’ average of 26% of GDP. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Upper middle income country average

Financial markets:
Stocks traded

Detailed Data

This section shows country data for each of the 41 metrics. The figures in brackets denote the change in score since InfraCompass 2017. 

Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

Argentina

Upper middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

19.2 (-5.0)
37.7

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

45.2 (+3.1)
45.1

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

53.3
40.2

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

50.3 (-3.1)
46.1

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Argentina

Upper middle Income Countries Average

19.2 (-5.0)
37.7
45.2 (+3.1)
45.1
Yes
-
53.3
40.2
50.3 (-3.1)
46.1
Yes
-

Country Overview Data

The quality of Argentina's infrastructure procurement processes improved significantly helping to bring better value for money and quality outcomes from investment. Regulatory reforms have also led to a marked improvement in the ease of starting a business, encouraging investment and competition from new suppliers. However, the impact of the COVID-19 pandemic and the continued threat of a sovereign debt crisis present key challenges for Argentina's ability to deliver future infrastructure projects.
GDP per capita

9,888 USD

Population

45.1 million persons

Infrastructure quality

68.3 (0-100 best)

Infrastructure investment

2.3% of GDP

Private infrastructure investment

525.9 5-year average, USD millions

Infrastructure gap

1.5% of GDP

GDP

445.5 USD billion

GDP growth rate

-3.1%

GDP per capita growth rate

-15.2%

Gini coefficient

41.2 (0-100 worst)

Gross Government Debt

93.0% of GDP

Inflation rate

54.4%

Summary credit rating

12.0 (0-100 best)

Unemployment rate

10.0%

Urbanisation ratio

92.0% of total population

Road connectivity

94.5 (0-100 best)

Quality of road infrastructure

3.6 (1-7 best)

Efficiency of train services

2.7 (1-7 best)

Efficiency of air transport services

4.4 (1-7 best)

Efficiency of seaport services

3.9 (1-7 best)

Electricity access

98.8% of population

Electricity supply quality

13.0% of output lost

Exposure to unsafe drinking water

8.2% of population

Reliability of water supply

5.3 (1-7 best)

Digital Adoption Index

0.7 (0-1 best)

Mobile-broadband subscriptions

80.7 per 100 population

Fixed-broadband Internet subscriptions

19.1 per 100 population