Argentina: Economic activity slows in January
Latest reading: Economic activity rose 1.9% on a year-on-year basis in January, following a 3.3% rise in the prior month.
Relative to the prior month’s data, readings in January worsened for agriculture (+25.1% on a year-on-year basis vs +30.1% in December) and hotels and restaurants (-2.2% vs -1.5% in December). In contrast, readings improved for manufacturing (-2.6% vs -4.1% in December), construction (+0.5% vs -0.1% in December) and transport and communications (+2.3% vs +2.0% in December).
In month-on-month terms, economic activity rose 0.4% in January, following 1.8% growth in the prior month.
Panelist insight: On the outlook, Itaú Unibanco analysts said:
“We forecast GDP growth of 3.5% in 2026, underpinned by a firmer outlook for investment, alongside a favorable statistical carryover. That said, persistent acceleration in inflation poses headwinds to the real wage recovery, warranting a more cautious stance on the pace of the consumption rebound. Separately, leading indicators for investment such as imports of capital goods have yet to signal a recovery in the near term.”