Argentina's economic activity grows 0.8% in June, recovering from contraction

Argentina's economic activity saw a rebound in June, growing 0.8% compared to May, according to official data released by the National Institute of Statistics and Censuses (Indec). This marks a recovery after two consecutive months of contraction, signaling a potential shift in economic momentum.

On an annual basis, the economy expanded by 2.7% in June. For the first half of the year, the cumulative economic activity registered an increase of 1.9%. The Indec report highlights that twelve out of fifteen economic sectors contributed to this year-on-year growth.

Key sectors driving the expansion included mining and hydrocarbons, which surged by 15.6%, and agriculture, which grew by 4.6%. The industrial sector, a crucial component of the Argentine economy, also showed signs of recovery, posting a 1.9% year-on-year improvement after experiencing significant declines in the preceding two months. Commerce, however, saw more modest growth, increasing by only 0.8%, indicating persistent challenges in its recovery.

Private sector analysts anticipate a continued "mild positive trend" for Argentina's economic activity. They expect dynamic sectors to lead the growth, with industry and commerce gradually improving as domestic consumption shows sustained recovery. However, forecasts for the full year suggest a growth rate of 2.7% in 2026, which is lower than the 4.4% expansion recorded in 2025.