Argentina’s GDP increased by 3.3% in the third quarter compared to the same period of 2024, according to official data released this Tuesday (16), marking its fourth consecutive quarterly increase. The result was, however, below the expectations of market analysts, who expected growth of 3.5% for the September-December period.
The annual increase was mainly driven by a sharp rise in gross fixed investment, with gains also recorded in financial intermediation, mining and extraction, as well as the hospitality sector, Argentina’s national statistics agency Indec reported.
In seasonally adjusted terms, GDP increased by 0.3% compared to the second quarter of the year, Indec added.
President Javier Milei’s party won a landslide victory in mid-term legislative elections in late October, reflecting broad support for his economic program despite the government’s harsh austerity measures. Argentine assets rose sharply shortly after winning the midterm elections.
Economists are watching Latin America’s third-largest economy consolidate its recovery after emerging from recession late last year, with domestic consumption and industrial production still under pressure.
Analysts also warned that Milei’s stronger-than-expected performance in the midterm elections highlights voters’ concerns about a return to past economic crises and their willingness to spend more time on his high-risk economic reform, despite his discomfort with austerity.
The government expects economic growth of 5.4% in 2025, while the latest Market Expectations Survey (REM) from the Argentine Central Bank forecasts growth of 4.4% for the year.
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