How is Argentina's economy? Growth and fall in inflation contrast with poverty and unemployment

Argentine President Javier Milei delivers a special speech during the 55th annual meeting of the World Economic Forum in Davos, Switzerland, on January 23, 2025. — Photo: Reuters

When questioning candidate Flávio Bolsonaro (PL) about his proximity to Javier Milei, President Luiz Inácio Lula da Silva (PT) asked if his opponent intended to reproduce in Brazil the economic policy adopted by the Argentine.

The discussion took place after Daniella Marques, economic coordinator of Flávio Bolsonaro's campaign, pointed to Milei's government as an inspiration for measures to reduce taxes and bureaucracy.

The indicators, however, reveal a more complex picture: the Argentine economy grew again and inflation slowed down, but poverty and unemployment increased, while domestic consumption and sectors important for job creation face difficulties.

The Argentine Gross Domestic Product (GDP) grew 2.3% in the first quarter of 2026 compared to the same period of the previous year. In the second quarter, the increase was 2% on the same basis of comparison, according to the National Institute of Statistics and Census (Indec).

The positive results, however, hide a loss of pace. Between April and June, GDP fell 0.6% compared to the first three months of the year, already discounting seasonal effects. Private consumption fell 2.4%, public consumption fell 2.3% and investments fell 0.8%.

In the annual comparison, gross fixed capital formation — an indicator of investments made in the economy — fell by 11.1%.

The composition of growth also helps to understand this scenario. In the first quarter, agriculture, fishing, mining and financial intermediation were among the main drivers of expansion, while the manufacturing industry fell 1.7% and retail trade fell 0.3%.

In the second quarter, activities linked to exports once again stood out: fishing grew 44.7%, mining and quarrying increased 16.4%, and agriculture increased 6.9%.

Exports of goods and services increased by 13.7%, while imports decreased by 8.6%. Conversely, the manufacturing industry fell 2.1%.

➡️ The numbers point to an uneven recovery. While activities linked to exports advance, segments more dependent on the domestic market face difficulties. This difference matters because expanding sectors, such as mining, are not always those that generate the most jobs.