Argentina Economy Contracts 0.6 Percent in Second Quarter

The economy of Argentina contracted by 0.6 percent in the second quarter of 2026, marking the first quarterly decline since 2024. Official figures released on September 17 indicate the downturn was driven by reductions in investment, government consumption, and household spending. This result was less severe than the 0.9 percent decline forecast by Bloomberg economists.

Despite the quarterly dip, gross domestic product grew 2 percent compared to the previous year, a trend supported by lower imports and higher exports. However, the period saw unemployment rise to 7.9 percent.

The contraction occurs as the government of President Javier Milei implements tight fiscal policies designed to curb inflation and eliminate budget deficits. Bloomberg Economics analysts expect modest growth in coming quarters, primarily driven by primary industries.