Economy grew less than expected in fourth quarter

Argentina’s economy expanded less than analysts anticipated at the end of 2025, marking a slowdown even as President Javier Milei tries to stimulate growth.

Gross domestic product rose 0.6 percent in the fourth quarter compared to the previous period, below economists’ estimates for 0.8 percent. From a year ago, the economy expanded 2.1 percent in the quarter, and Argentina posted cumulative growth of 4.4 percent for all of 2025.

Exports led growth on a quarterly basis, rising five percent in the period compared with the previous quarter, while private consumption also contributed, increasing 1.7 percent. GDP gains came even as public spending fell one percent and capital investment declined 2.8 percent in the three-month period.

Milei achieved a rare feat in Argentina of slowing annual inflation while pulling the economy out of a slump. Still, the country’s economic recovery on his watch is increasingly uneven with sectors like energy, mining and financial services thriving while construction, manufacturing and retail are showing signs of recession.

Despite business conditions improving overall, the country’s private sector workforce posted losses last year even as exports increased and annual inflation cooled significantly, albeit still at high levels. More recently, economic activity has declined two of the past three months through December and monthly inflation last decelerated in May. The government’s tax revenue has trailed inflation for seven months.

After his party won last October’s midterm elections, Milei is turning his focus to stimulating growth this year by lowering prohibitive interest rates that have hit consumer spending and suspended the vast majority of mortgage lending.

Economists anticipate Argentina’s economy growing 3.4 percent this year, according to the Central Bank’s latest monthly survey.