Argentina’s economy expanded faster than expected in June

Argentina's economy surged ahead of forecasts in June, signaling growing strength in the early stages of President Javier Milei's administration. The nation's economic activity increased by 0.8% month-over-month, surpassing the 0.3% estimate predicted by Bloomberg economists. Year-over-year, the economy expanded at a 2.7% rate, outpacing the 2.4% median forecast. Notably, growth was uneven, with inflation persisting as a challenge for Milei's government.

April and May saw a dip in monthly activity. However, the mining sector drove the annual growth, followed by agriculture. Recently, the government conceded that the economy was expanding at a slower pace than initially thought. In an effort to "reactivate the economy," Economy Minister Luis Caputo rescinded a 2001 restriction, permitting dollar lending to all companies, not just those with dollar revenues.

Despite this, Argentina continued to grapple with inflation issues. In July, the nation's monthly inflation rate ticked up by 2.1%, after three months of declining readings. Consumer prices increased 2.1% from June. Economists surveyed by the Central Bank projected a 2026 inflation rate of 29.8%, a slight decrease from 30% in a prior survey. Simultaneously, growth forecasts stood at 2.7%, a drop from June's three percent prediction.