Argentina is seeing an increasing government tendency towards
intervention and regulation of economic activities. Almost all
aspects of economic activity are currently being affected. Measures
include restrictions on transfers of funds abroad, restrictions
both on the import and export of goods, limitations on the
acquisition of real estate by foreigners, and increasing regulation
and scrutiny of companies that carry out certain activities such as
broadcasting and oil & gas. These are only some examples.
Regulation and government intervention per se should
not necessarily have a negative impact. However, when these create
uncertainty, economic activity is invariably affected. The higher
the uncertainty, the higher the negative effect. This applies
especially to transactions that require a huge investment and a
long ROI period.
