Argentina Economic Activity Returns to Expansion

Argentina’s economic activity increased 3.5% year-on-year in December 2025, up from a 0.1% decline in November and marking a return to expansion. Growth was primarily driven by a significant strengthening in agriculture (32.2% vs 11.5%) alongside accelerated gains in mining (9.1% vs 7.3%) and utilities (10.7% vs 1.8%). Financial intermediation (14.1% vs 13.8%), real estate and business services (1.6% vs 0.5%), and transport and communications (1.8% vs 1.9%) also remained positive contributors. Furthermore, the construction (0.3% vs -2.5%) and education (0.3% vs 0.5%) sectors added to the expansion. Conversely, the recovery was limited by continued contractions in manufacturing (-3.9% vs -8.0%), trade (-1.3% vs -6.0%), and the public sector (-1.1% vs -1.1%), albeit at a softer rate. Additionally, hotels and restaurants moved into negative territory (-1.5% vs 0.8%). On a monthly, seasonally-adjusted basis, activity rose (1.8%), while the trend-cycle increased (0.3%).