Argentina’s Economy Grows 5.8% in Early 2025, Driven by Investment and Consumption

Argentina’s economy expanded by 5.8% in the first quarter of 2025 compared to the same period last year, according to the National Institute of Statistics and Census (Indec).

The main reason for this growth was a sharp increase in investment, which rose by 31.8%. Private consumption also went up by 11.6%, and exports grew by 7.2%. However, imports saw an even bigger jump, increasing by 42.8% during this period.

Looking at different sectors, financial services activity rose by 27.2%, fishing by 11.6%, and net taxes (taxes minus subsidies) by 10.8%. The hotel and restaurant sector grew by 9%, followed by trade at 7.3%, mining and quarrying at 6.6%, and manufacturing at 5.1%.

Not all sectors saw growth. Households employing domestic workers shrank by 2.2%, community services dropped by 1.6%, and there were smaller declines in health, social services, and public administration.

Compared to the last quarter of 2024, the economy grew by 0.8%. This marks a turnaround from 2024, when Argentina’s GDP fell by 1.7% during a period of strict fiscal adjustments.

President Javier Milei described the current situation as “a wonderful case of growth” and reaffirmed his commitment to economic policies focused on fiscal discipline and growth.

International organizations like the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD) expect Argentina’s economy to grow by around 5% in 2025.

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