Will infrastructure investments revive Argentina's economy?

Source: Latin Finance

In Argentina, an energy and infrastructure deficit is a major constraint on what the economy needs for growth: investment. 

Roads get clogged in the farm belt during harvests, cargo train services are limited and summer power outages are frequent. This year, natural gas imports reached the maximum capacity that can be handled by the country’s pipelines and two floating regasification units, as growth in demand outpaced domestic production for the twelfth year in a row.

With gas shortages taking a toll on industrial production, President Mauricio Macri has come out as a crusader for conservation. "If you’re wearing a T-shirt and walking around barefoot at home in the winter, then you’re consuming too much energy," Macri said in July as a cold snap ramped up household heating demand and left factories short of gas. "A country without energy cannot grow," he said.


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