Argentina's economy grows 2.3% in Q1, driven by agriculture and mining amid investment slump

Argentina's economy began 2026 with a 2.3% year-on-year growth in the first quarter, signaling a recovery, albeit a heterogeneous one. The Gross Domestic Product (GDP) also showed a 0.7% increase from the previous quarter, according to data from Indec.

The economic expansion was primarily fueled by sectors linked to natural resources and exports. Agriculture, livestock, hunting, and forestry led the charge with an 18.1% expansion, followed by mining and quarrying at 12.3%, and fishing which surged by 27.5%. These export-oriented sectors contributed significantly to the overall GDP growth.

Conversely, private investment experienced a sharp decline, with gross fixed capital formation falling 11.6% compared to the first quarter of 2025. This contraction was particularly pronounced in machinery and equipment, which decreased by 18.1%, and transport equipment, down 19.6%. Investment in imported goods dropped by 20.6%, while domestically produced goods saw an 11.5% decrease.

Manufacturing also continued its downward trend, registering a 1.7% year-on-year decline. Other sectors showing negative performance included public administration (-1.4%), electricity, gas, and water (-1.1%), and wholesale and retail trade (-0.3%). While private consumption grew by 2.7%, its pace was slower than in previous periods, and public consumption decreased by 0.9%. The data highlights a recovery concentrated in specific sectors, with investment remaining a key area of weakness.