BUENOS AIRES (Reuters) -Argentina’s economy grew year-on-year for the second straight quarter, official data showed on Monday, as South America’s second-largest economy bounces back from a recession early last year.
Gross domestic product expanded 5.8% in the first quarter compared to the same quarter in 2024, coming in under the 6.1% expansion forecast by analysts polled by Reuters.
Compared to the fourth quarter of 2024, GDP expanded 0.8% in seasonally adjusted terms.
Argentina’s economy emerged from a painful recession in the second half of last year, and economists have waited to see whether the recovery would consolidate in 2025.
President Javier Milei has won plaudits for stabilizing the state’s finances, but his tough austerity drive weighed on economic activity in the first months of 2024. Cuts to state spending, meanwhile, continue to hit public workers hard, with salaries falling behind inflation.
The central bank’s latest market expectations survey of analysts forecasts GDP growing 5.2% this year.
(Reporting by Hernan Nessi and Brendan O’Boyle; Editing by Kylie Madry)
Comments