Argentina's Economy Grows 7.6% In Q2 2025 As Shops And Building Sites Lead Recovery

(MENAFN- The Rio Times) Argentina's economy grew 7.6% in the second quarter of 2025, official data shows. This is the country's best performance in years, coming after a long crisis marked by high inflation and shrinking incomes.

The main drivers of this growth are a strong rebound in commerce and construction, both of which have responded quickly to new government policies. President Javier Milei's government took office in late 2023 and made big changes.

The administration cut government spending, ended the central bank 's money printing, and removed many rules that made business difficult. These steps helped restore confidence among investors and business owners.

Official figures show private investment jumped 22.7% this year, and construction activity is up sharply. Inflation, which was over 200% in 2023, has dropped fast. By May 2025, monthly inflation fell to 1.5%.

The peso has stabilized, and price rises are now more predictable, making it easier for businesses and families to plan. Trade numbers also show improvement. In May, Argentina had a trade surplus of $608 million, with exports at $7.1 billion and imports at $6.5 billion.



Imports have grown as local demand picks up, while exports remain steady, especially to Brazil and the European Union. People are spending more, too. Private consumption is up 7.2%, and government spending has risen by 5%.

However, most workers still earn less in real terms than they did in 2017, and unemployment remains a challenge. Argentina's recovery is not complete, but the country is on a stronger path.

The government's reforms have brought stability and sparked growth in key sectors. The next test will be making sure these gains reach more people and last beyond the current rebound.


Key Economic Figures (2025 Q2 Estimates)



Indicator
2025 Q2 Estimate

GDP Growth (Annualized)	5.5% – 8%
Private Investment	Up 22.7%
Construction Growth	8.8%
Industrial Production	Up 5.3%
Retail/Commerce Growth	Up 7.6%
Agriculture Growth	Up 2.1%
Private Consumption	Up 7.2%
Public Consumption	Up 5%
Exports	Up 3.7%
Imports	Up 25.2%
Inflation (Annualized)	22.7% – 30%
Trade Surplus	$608 million (May)

Highlights

• Private investment up by 22.7%.
  
• GDP growth estimated at 5.5% – 8%.
  
• Imports surged by 25.2%, exports up 3.7%.
  
• Inflation remains high: 22.7% – 30% (annualized).
  
• Trade surplus reached $608 million in May.
  

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