Argentina’s economy picked up much more than expected in March

Argentina’s economy rebounded much more than expected in March after a sharp slump in February in a timely victory for President Javier Milei.

Economic activity grew 3.5 percent from February, above the 0.8 percent bump estimated by economists surveyed by Bloomberg, according to government data published Thursday. From a year ago, the gross domestic product proxy grew 5.5 percent, far exceeding the 2.1 percent median estimate of economists surveyed by Bloomberg.

The agriculture sector led growth, followed by manufacturing and mining. Fourteen of the 15 sectors of the economy expanded from the same month last year, according to the report by the INDEC national statistics bureau.

Activity in February had posted a 2.7 percent monthly contraction, the biggest slump since 2023 as retail and manufacturing continued to struggle. Monthly inflation, on the other hand, slowed in April for the first time in 11 months to 2.6 percent, led by higher fuel costs, followed by education.

Economy Minister Luis Caputo said in a local radio interview this week that the economy should start to accelerate in May and June.

Economists surveyed by the Central Bank in April forecast a 2026 year-end inflation rate of 30.5 percent, revised up from 29.1 percent a month earlier, and growth of 2.8 percent, revised down from 3.3 percent the previous month.