Argentina Economy Shrinks for Second Month Amid Uneven Recovery
Economic activity fell 0.5% from April, while annual growth rose 0.2% and manufacturing and retail lagged, government data showed.
- Economic activity fell 0.5% in May, missing the 0.2% growth projected by Bloomberg Economics, marking a second straight month of contraction halfway through President Javier Milei's term in Argentina.
- On Tuesday, Moody Ratings became the third and final major credit rating company to upgrade Argentina's credit score, strengthening the case for the country's return to international debt markets.
- Agriculture and mining led growth on an annual basis, yet manufacturing and retail fell, limiting spillovers to the broader economy; unemployment continues to rise as the formal labor force sheds nearly half a million jobs.
- Inflation slowed for a third straight month in June to its lowest level since August, while economists surveyed by the Central Bank forecast 2026 growth of 3% driven by record exports.
- Morgan Stanley analysts led by Fernando Sedano expect growth dynamics to become less heterogeneous as construction activity edges up and consumer sentiment improves. They warned that uneven growth could eventually lead to a political shift next year.
19 Articles
19 Articles
Argentina’s Economy Contracts Again in May, Exposing Uneven Recovery
Argentina’s Fragile Rebound Key Facts —Monthly contraction. Economic activity fell 0.5% in May from April, the second consecutive monthly decline. —Year-on-year growth missed forecasts. The economy grew just 0.2% from May 2025, far below the 2.5% analysts had expected. —Sector split. Agriculture and mining led growth, while manufacturing and retail contracted, showing a two-speed economy. […] The post Argentina’s Economy Contracts Again in May, …
Argentina's economic activity grew less than expected in May, showing official data released on Wednesday, as advances in agriculture and mining were partially offset by fishing performance. Read also: Monthly inflation in Argentina slows down in June Milei's low popularity leads Argentina to search for third way A high of 0.2% of the third largest economy in Latin America was below the 2.3% expansion projected by analysts consulted by Reuters a…
Argentina Economy Shrinks for Second Month Amid Uneven Recovery
The economist warned that the initial data of the month show no recovery and alerted for a "participated" economy, with interior in better situation and GBA still lagging behind. Cement, cars, VAT and credit reboot alarms.
Economic activity again showed signs of weakness during May and chained its second consecutive monthly decline, according to a private survey that monitors the evolution of the level of production in Argentina. The report notes that the Gross Domestic Product (GDP) recorded a deseasonalized fall of 0.5% compared to April. With this result, the indicator accumulates a fall of 1.5% in the first five months of the year against the end of 2025. The …
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