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Argentina

Argentina's economy in 2025 is experiencing a strong recovery, with GDP growth estimated between 5.5% and 8%, the fastest expansion in years following a prolonged crisis marked by high inflation and income shrinkage. This rebound is driven largely by a vigorous resurgence in commerce and construction, which responded rapidly to fiscal discipline, a re-monetization strategy, and deregulation policies aimed at boosting investor confidence and reducing government spending.

Private investment surged by over 22% in early 2025, contributing to a construction boom, and other key sectors such as manufacturing, wholesale and retail trade, transportation, and agriculture also recorded solid gains. Imports grew rapidly, reflecting rising domestic demand, while exports increased moderately, supported by stable trade relationships with Brazil and the European Union.

Inflation remains a challenge but has eased significantly from extremely high levels in 2023, dropping to an annual rate between 22.7% and 30%. The peso has stabilized, and inflation predictability is improving, facilitating better planning for businesses and households. The government has maintained fiscal order, achieving a projected primary surplus of 1.6% of GDP in 2025.

Despite economic improvements, social challenges remain, with poverty rates still high at around 31.7% and real wages below pre-2017 levels for many workers. Nonetheless, the economy is on a stronger path, supported by reforms that have restored confidence, fiscal stability, and gradual normalization of monetary policies.

Overall, Argentina in 2025 presents a vibrant yet cautious economic landscape marked by rapid growth, recovering production and consumption, and ongoing challenges related to inflation and social inclusion. Continued implementation of structural reforms, enhanced fiscal management, and investment in productivity will be key to sustaining growth and expanding economic opportunities across society.

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