Argentina's economic activity expanded by 4.4pc in 2025, based on preliminary government data.
The annual growth was below the government forecast of 5pc and the IMF's more modest 4.5pc growth, but much stronger than the 1.7pc contraction the previous year. The economy also contracted in 2023.
December was the strongest month for growth in the fourth quarter of the year, expanding by an annual 3.5pc in December from the prior month, when the economy contracted by a revised annual 0.1pc, according to the statistics institute, Indec.
It was the second best monthly performance since June and reversed a two-month slide. The strongest monthly expansion in 2025 was 7.7pc registered in April.
The strongest performance for December was in agriculture, up 32.2pc compared from a year earlier. Output in fisheries rose by 18.3pc, financial intermediation rose by an annual 14.1pc and mining climbed by 9.1pc in December from a year earlier.
Weighing on growth, manufacturing fell by an annual 3.9pc, hospitality by 1.5pc and retail by 1.3pc.
President Javier Milei's government forecasts 5pc growth for 2026, while the IMF projects 4pc growth. Argentina is the IMF's largest creditor nation, with $41.8bn in credits from the IMF out of the $119.5bn owed the institution.
The government is betting on a boost from labor reform legislation, which cleared most congressional hurdles in February, but still requires one more vote by the Senate, and additional bills that will make it easier to approve extractive projects.
While still grappling with high inflation, the government has a bit more breathing room as the Argentinian peso has appreciated in trading against the US dollar so far this year, following the same pattern of other big economies in the region.
The Argentinian peso appreciated 5.2pc between the start of the year and 23 February, second only to Brazil's real in the region. This compares to a 28.9pc depreciation for the peso in 2025.
Inflation was running at an annual 32.4pc in January, quickening from 31.5pc in December. The government forecasts inflation to end the year at 10.1pc for 2026 in its annual budget, while the IMF estimates it at 16.4pc and international banks even higher, with JPMorgan forecasting 26pc and BBVA 22pc inflation this year.
