However, compared to the same period of the previous year, there was a growth of 6.3%
The Argentine economy is at a time of transition, with the government of seeking to balance inflation control with economic activity. Recent data from the National Institute of Statistics and Census (INDEC) show the complexity of this scenario. The Gross Domestic Product (GDP) from the 0.1% drop in the second quarter of 2025 compared to the previous quarter. However, the scenario is more complex compared to the same period of the previous year: there was a significant growth of 6.3%. The explanation for this contrast is the base of 2024 comparison, which was depressed by a 1.7% drop in GDP.
One of the prominent points of Milei’s management is success in controlling inflation. Annual inflation, which in 2024 accumulated 117%, was reduced to a monthly inflation of 2%, which, when annualized, reaches 26%. To support this result, the Argentine Central Bank intervened in the exchange market to prevent the devaluation of the Argentine weight.
During his campaign, Javier Milei was transparent in claiming that the situation would get worse before improving. Projections for 2025 indicate a favorable economic growth, between 5% and 5.5%.
*With information from Alan Ghani
*Report produced with the aid of AI
