Argentina Economic Activity Grows 0.8% in June

Economic activity in Argentina grew 0.8% in June, surpassing the 0.3% median estimate from economists. On an annual basis, the gross domestic product proxy expanded 2.7%, a trend driven primarily by the mining and agriculture sectors. This growth follows contractions in April and May, which left the overall second quarter in negative territory.

To stimulate further economic momentum, Luis Caputo, the Economy Minister of Argentina, removed a restriction dating back to 2001. The move permits dollar lending to all companies, regardless of whether they generate dollar revenues.

Despite the June expansion, the administration of President Javier Milei continues to face significant inflationary pressure. Consumer prices rose 2.1% in July, and economists surveyed by the central bank project a 2026 year-end inflation rate of 29.8% alongside annual growth of 2.7%.