FX.co ★ Argentina GDP Grows Less Than Expected in Q1

Argentina's economy experienced a 5.8% growth on a year-on-year basis in the first quarter of 2025. This performance fell short of analysts' expectations of 6.1%, yet it continues the recovery trend that started with a 2.6% increase in the fourth quarter of 2024, following six consecutive quarters of decline. The resurgence was primarily driven by the agricultural sector, which grew by 3.7% compared to 1.6% in the final quarter of 2024, as the significant drought from the previous year subsided. Other sectors contributing to this recovery included construction, which jumped 6.1% after a 12.4% decline; manufacturing, which improved by 5.1% from 0.7%; wholesale and retail trade, which saw a boost of 7.3% from 2.5%; transportation, which increased by 2.6% from 2.0%; and financial intermediation, which soared to 27.2% from 8.4%. On a quarterly basis, GDP rose by 0.8%, following an impressive 2.0% increase in the fourth quarter.