Industry and other key sectors grew strongly in May 2025

The National Institute of Statistics and Censuses (INDEC) released a series of economic indicators for May 2025 this past Monday and Tuesday, which show a significant recovery in key sectors of the Argentine economy.

According to official data, the manufacturing industry and energy production recorded notable year-on-year improvements, reflecting the stability of macroeconomic variables thanks to the adjustment and deregulation policies implemented by the government of Javier Milei, which achieved not only a strong economic recovery but also a phenomenal drop in inflation and poverty.

In May, industrial activity grew by 5.8% compared to the same month in 2024, and by 2.2% compared to April, consolidating a positive trend that had begun to emerge a few months ago. Within the sector, the largest year-on-year increase was seen in the production of "Other transport equipment," which rose by 35.3%. Meanwhile, basic metal industries had the greatest positive impact, contributing 1.02 percentage points to the total manufacturing index.

The construction sector also showed a significant year-on-year improvement, with growth of 8.6% compared to May 2024, although with a slight decrease of 2.2% compared to April.

In the energy sector, crude oil production performed outstandingly: it increased 9.4% year-on-year, driven by 21.7% growth in unconventional oil extraction. This data shows the dynamism in Vaca Muerta and other key basins, in line with the new regulatory framework aimed at attracting investment to the sector.

Additionally, mining made a significant leap in one of the strategic products for the global energy transition: in May, 7,965.4 metric tons (17,564 pounds) of lithium carbonate were extracted, 100% more than in the same month of the previous year. Argentina thus strengthens its position as a central player in the global lithium market, with projects in Jujuy, Salta, and Catamarca beginning to show results.

Maritime fishing also produced positive data, with year-on-year growth of 11.8%, while overall mining production advanced by 0.5% compared to May 2024.

Together, the indicators demonstrate the positive trend in key productive sectors, which until a few months ago had been experiencing sustained declines due to the severe economic crisis inherited from Kirchnerism. These improvements are the result of reduced public spending, macroeconomic order, market liberalization, and renewed confidence from private actors.