Argentina’s economy grew more than expected in first quarter

Economic growth in Argentina proved resilient in the first quarter, surpassing expectations even as unemployment rose and wages trailed inflation. 

Gross domestic product expanded 0.7 percent compared to the previous quarter, above analyst forecasts for 0.4 percent growth. On an annual basis, the economy grew 2.3 percent, according to government figures published Tuesday. 

Consumer spending led growth during the three-month period, while capital investment, exports and government expenditure all declined on a quarterly basis. A drop in imports also aided growth. 

Wages rose 3.7 percent in April, surpassing monthly inflation, according to other figures released Tuesday. Still, so far this year, wages are up 11 percent, trailing nearly 12 percent inflation over the same period.

The figures underscore one of President Javier Milei’s top problems in an uneven economic recovery defined by both solid growth and higher unemployment. 

Argentina’s GDP is expected 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 has lost over half a million jobs since Milei took office, including heavy lay-offs in construction and manufacturing. At the same time, the vast informal sector has gained 380,000 workers just in the past year.  

As Milei has tamed inflation, unemployment has now ranked among voters’ top concerns for the past year, according to LatAm Pulse, a survey conducted by AtlasIntel for Bloomberg News. 

Economists surveyed by the Central Bank expect Argentina’s economy to grow 2.9 percent this year.