Economic Growth in Argentina

BUENOS AIRES (Reuters) – Argentina’s economy grew for the first time in half a year, with a modest 0.1% year-on-year expansion in November, surpassing expectations, according to official data released on Thursday.

Analysts had predicted a 0.6% contraction in the grain-rich South American nation. This data suggests a potential turnaround for Argentina’s struggling economy, which has faced challenges due to President Javier Milei’s severe austerity measures designed to reduce inflation and stabilize the economy.

The figures showed an improvement compared to a 0.6% year-on-year contraction in the previous month, marking the first growth since a 1.4% increase in May last year, based on revised data. The increase in November was primarily fueled by growth in the fishing sector and the financial intermediation sector, as reported by the statistics agency INDEC.

However, 10 productive sectors experienced contraction in November, with the construction and commodities sectors facing the most significant declines.

Economic activity rose 0.9% in November compared to the previous month, representing the second consecutive monthly increase.