22.10.202519:14:43UTC+00Argentina Economic Activity Expands Less Than Expected

In August 2025, Argentina experienced a 2.4% year-on-year growth in economic activity. This marks a slowdown from the revised growth rate of 3.1% in July, falling short of the anticipated 2.5% expansion. Several sectors underperformed, contributing to this deceleration. Agriculture saw a decline of 1.4% compared to an increase of 1.2% in the previous month. Manufacturing underperformed significantly, dropping 5.1% from a 1.3% decrease in July. The construction sector also experienced a downturn, with growth of 1.5% down from 2.8%. Trade fell by 1.7% after July’s growth of 2.8%, while real estate and business services slowed to 2.9% from 4.1%. Education showed a slight decrease, at 1.1% compared to 1.3% previously.

In contrast, some areas displayed resilience. The hospitality sector, including hotels and restaurants, saw an acceleration of 6.4%, up from 6.0%. Transport and communications improved, recording a 2.6% growth against July’s 0.9%. Financial intermediation continued to be a strong contributor, posting a growth of 26.5%, up from 23.3%. Although utilities remained in contraction, the rate slightly improved from -2.1% to -1.6%. The public sector held steady with a minor decrease of 0.4%, marginally better than the previous -0.5%. While the mining sector continued to expand, its growth rate slowed to 9.3% from 13.5%. On a seasonally adjusted month-to-month basis, overall activity increased by 0.3%, despite a 0.1% decline in the trend-cycle.