Argentina's Economic Growth Stalls: Challenges and Changes

Argentina's economic activity showed minimal growth in April, falling short of expectations. Key sectors such as agriculture and mining saw gains, while fishing, manufacturing, and trade contracted. The uneven recovery under President Javier Milei highlights challenges in balancing inflation control with industry growth and public spending cuts.

Argentina's economic activity showed less growth than expected in April, according to official data released Wednesday. Gains in agriculture and mining struggled to offset declines in fishing.

The modest 0.2% rise was below the 2.3% forecast by analysts in a Reuters poll, and it also marked a slowdown from the 1.6% increase seen in March. The government statistics agency INDEC noted that farming, livestock, forestry, mining, and quarrying were the main growth drivers.

Eight sectors tracked by the monthly economic activity indicator contracted from the previous year, with fishing leading the decline. Manufacturing and wholesale and retail trade also fell. The data reflects an uneven recovery under Libertarian President Javier Milei, who has cut public spending sharply in an effort to curb inflation while trying to boost growth in industry, consumption, and construction.