Argentina's Economy Grows 2.3% in Q1 as Export Boom Masks Rising Strain
Updated
Updated · Buenos Aires Times · Jun 24
Argentina's Economy Grows 2.3% in Q1 as Export Boom Masks Rising Strain
1 articles · Updated · Buenos Aires Times · Jun 24
Summary
INDEC reported Argentina's GDP rose 2.3% year on year in the first quarter and 0.7% from the prior quarter, extending the recovery under President Javier Milei.
Exports and sectors tied to them—agriculture, fishing, mining and finance—drove the gain, while manufacturing shrank 1.7% and retail trade fell 0.3%, underscoring an uneven expansion.
Household indicators weakened even as private consumption rose 2.7%: unemployment reached 7.8%, informal work hit 44% in April, and bank-loan defaults climbed to 12.1% from 3.7% a year earlier.
Economists said the consumption data may reflect pricier services, imported purchases and spending abroad rather than stronger local demand, arguing growth is benefiting export-heavy sectors more than domestic employers.
Milei says austerity has ended chronic deficits and helped cut annual inflation to 31.5%; after 4.4% growth in 2025, Argentina is still expected to expand about 3% this year.