Argentina’s economy grew year-on-year for the second consecutive quarter, showing the strongest expansion since 2022 amid recovery from last year’s recession.
Gross domestic product increased by 5.8% in the first quarter compared to the same period in 2024, despite challenges from last December’s peso devaluation and austerity measures.
President Javier Milei described the growth data as positive but highlighted concerns over declines in public sector consumption.
While analysts expected a 6.1% rise, the reported figures still represent meaningful progress after the disruptions caused by the pandemic and economic policy shifts.
On a quarterly basis, GDP rose 0.8% compared to the fourth quarter of 2024, marking slower growth than earlier in the year but sustaining the upward trend.
This indicates cautious optimism as Argentina navigates ongoing economic headwinds.
Argentina’s economy showed notable expansion in early 2025, driven by recovery from a recession and significant policy shifts in late 2024.
The latest data reveals a solid increase in GDP compared to the previous year, along with a shift in quarterly growth patterns.
In the first quarter of 2025, Argentina’s Gross Domestic Product (GDP) grew by 5.8% year-on-year.
This represents a significant rebound from the previous year’s downturn triggered by peso devaluation and austerity measures introduced in December 2023.
Quarterly growth, however, slowed to 0.8% on a seasonally adjusted basis when compared to the fourth quarter of 2024.
This marks a deceleration after three consecutive quarters of stronger growth, reflecting ongoing economic headwinds despite the positive expansion.