GDP grew by 5.8% in the first quarter and confirms strong economic growth

GDP grew by 5.8% in the first quarter and confirms strong economic growth
GDP grew by 5.8% in the first quarter and confirms strong economic growth
porEditorial Team
Argentina

Private consumption and investment led the economic recovery

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Economic activity showed strong growth during the first quarter of 2025, with a year-on-year increase of 5.8%, according to the National Institute of Statistics and Censuses (Indec).

This figure reflects an improvement compared to the same period of the previous year, when the economy was still suffering the impact of the sharp devaluation recorded in the first days of Javier Milei's administration as a result of the Massazo.

Positive reaction at the start of the year

In the seasonally adjusted quarterly comparison, Gross Domestic Product (GDP) grew by 0.8% compared to the last quarter of 2024. This development indicates a strong economic recovery following the macroeconomic reorganization implemented by the ruling party.

The report details that private consumption grew by 2.9% compared to the previous quarter, while gross fixed capital formation—an indicator that measures investment—showed a notable increase of 9.8%. In contrast, exports decreased by 1.5% and public consumption fell slightly, with a drop of 0.1%.

Investment, the main driver of growth

On a year-on-year basis, gross fixed capital formation grew by 31.8%, representing the largest increase among the components of demand. This figure is relevant in the context of an economy seeking to restore investment flows after years of stagnation.

Private consumption also showed a moderate recovery, although public consumption continues to reflect the austerity policy promoted by the Executive Branch.

Sectors that led activity

At the sectoral level, the segments with the highest growth were Financial Intermediation (+27.2%), Fishing (+11.6%), and Hotels and Restaurants (+9.0%), suggesting a rebound in areas related to both services and the real economy.

In contrast, the only sector with a negative result was Private Households with Domestic Service, which fell by 2.2% compared to the same period of the previous year. This decline could be associated with adjustments in households' consumption of personal services.

With these figures, the Government will seek to consolidate its narrative of recovery and economic order, while the market remains alert to the evolution of reserves, inflation, and the fiscal targets agreed with the International Monetary Fund.


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