Argentina’s economic activity grew more than expected in June, offering fresh signs of momentum more than halfway through President Javier Milei’s term.
Economic activity expanded 0.8 percent from May, above the 0.3 percent median estimate of economists surveyed by Bloomberg, according to government data published Thursday. From a year ago, the gross domestic product proxy hit 2.7 percent, above the 2.4 percent median estimate. Monthly activity fell in April and May.
The mining sector led growth on an annual basis, followed by agriculture.
Last week, the government acknowledged the economy was growing more slowly than previously anticipated. To “reactivate the economy,” Economy Minister Luis Caputo scrapped a restriction dating back to 2001 to allow dollar lending to all companies, which was previously restricted to only those that generated dollar revenues.
The uneven growth comes as inflation remains a challenge for Milei’s government. Argentina’s monthly inflation edged up in July, snapping three months of slower readings. Consumer prices rose 2.1 percent from June.
Economists surveyed by the Central Bank in July forecast a 2026 year-end inflation rate of 29.8 percent, down from 30 percent in the previous survey, combined with growth of 2.7 percent, down from a three percent forecast in June.
by Manuela Tobias, Bloomberg
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