Economic activity down 1.7% year-on-year in August, sharpest fall of 2026

In August, the Argentine economy shrank by 1.7 percent compared to the same month last year, according to official statistics. This marked the sharpest year-on-year decline since September 2024, when the economy contracted by 2.4 percent. Despite the contraction, the economy remained in positive territory for the first eight months of the year, growing by 1.2 percent year-to-date.

On a seasonally adjusted basis, the index grew by a mere 0.1 percent from the previous month. Manufacturing and trade sectors experienced the most significant contractions, shrinking by 3.2 percent and 3.5 percent, respectively. Meanwhile, mining saw a 11.1 percent year-on-year increase, and electricity, gas and water services expanded by 4.3 percent, ranking among the fastest-growing sectors in the annual comparison.

Hotels and restaurants also reported growth, with a 3.1 percent increase. However, 10 sectors, including fishing and agriculture, recorded declines. Fishing activity fell by 15.7 percent, marking its sharpest decline since September 2023, while agriculture contracted by 1 percent after 12 consecutive months of growth. The Centre for Economic Policy Studies (CEPEC) noted that the monthly increase in economic activity fell short of expectations.

They cautioned that growth forecasts for 2026 might need to be revised downwards, as the economy's momentum could be hindered by its reliance on positive growth inherited from 2025.