Argentina's economy contracted in April as uneven growth persists

Argentina’s economy contracted in April after a short-lived rebound the previous month, underscoring a trend of uneven growth more than halfway through President Javier Milei’s term.

Economic activity fell 1.5 percent from March, below the one percent drop estimated by Bloomberg Economics, according to government data published Monday. From a year ago, the gross domestic product proxy grew 1.6 percent, below the 3.3 percent median estimate of economists surveyed by Bloomberg.

“The key problem remains a highly uneven composition. Most strength is concentrated in a handful of competitive tradable sectors, with no signs of a pickup in the broader economy," said Jimena Zúñiga, Argentina Economist for Bloomberg.

Agriculture led growth on an annual basis, while manufacturing, retail and fishing fell. Earlier indicators had already previewed an uneven performance across the economy, with mining expanding while manufacturing and construction both contracted more than two percent from a year ago.   

Argentina’s gross domestic product grew 0.7 percent in the first quarter, more than expected, compared with the previous quarter on consumer spending. Argentine GDP is forecast to expand for the second straight year in 2026, driven by record exports from energy, agriculture and mining. Yet unemployment continues to rise as the formal labour force sheds nearly half a million jobs. 

Economists Argentina expect the country to grow 2.9 percent in 2026 and inflation to slow slightly to 30.5 percent, according to the Central Bank’s monthly survey in May.