Argentina's economy grew by 5.6% year-on-year in April thanks to Milei's government.

Economic activity recorded strong year-on-year growth of 5.6% in April, according to the most recent report from the General Activity Index (IGA), prepared by consulting firm Orlando J. Ferreres & Asociados. This rebound marked the seventh consecutive month of expansion compared to the same period of the previous year.

Additionally, the report from IGA-OJF indicated a 1.3% increase in the seasonally adjusted series compared to the previous month. Thanks to this rise, "almost all the ground lost in the seasonally adjusted series" was recovered, according to the report. In the cumulative total for the first four months of 2025, the economy showed a total expansion of 6.6%.

Sectoral variations

Regarding sectoral performance, the Agriculture and Livestock sector experienced a 5.2% decline. This drop was mainly attributed to a 7.0% decrease in agricultural activity, compared to the second quarter of the previous year's main harvest, although livestock activity showed a 4.8% growth. In the cumulative total from January to April, the sector posted a 1.3% contraction.

Meanwhile, the Manufacturing Industry (IPI-OJF) reported a 3.1% year-on-year increase in April, reaching a cumulative increase of 4.1% in the first four months of the year. The seasonally adjusted variation was also positive, with a 1.2% rise in April, which allowed for a partial recovery after the decline recorded in March. Improvements were notable in the segments of non-metallic minerals, machinery and equipment, and basic metals.

The Electricity, Gas, and Water sector showed a year-on-year decrease of 2.5% in April, accumulating a 2.0% contraction in the first four months of the year. This sector has posted six consecutive months of year-on-year declines. According to a report from Cammesa, electricity generation and demand fell by 1.8% year-on-year, mainly due to lower demand from the residential sector.

In contrast, the Mining and Quarrying sector posted a 5.6% increase in April, accumulating a 6.3% growth between January and April, consolidating more than three years of sustained expansion. In this context, oil production recorded a 12.2% year-on-year increase, while natural gas production grew by 1.4%.

The strongest growths

Among the sectors that recorded notable variations during April were Financial Intermediation, with a remarkable 29.8% increase, Wholesale and Retail Trade, which grew by 6.7%, Real Estate Activities, with a 3.5% rise, and the Transport, Storage, and Communications sector, which increased by 1.3%.

In contrast, the Construction sector showed a 1.9% decline in April. Nevertheless, in the cumulative total for the first four months of the year, it still showed a 2.6% growth.

Regarding projections, the authors of the report foresee a continuation in the improvement of economic activity, supported by a more stable macroeconomic environment, characterized by lower inflation and greater exchange rate certainty, thanks to the successful plan of the Government of Javier Milei.

Furthermore, the analysis emphasizes that, in the medium term, it will be essential to increase investment levels and address structural issues such as labor productivity and the design of the tax system. These elements are considered key to ensuring sustained long-term growth.