Argentina's Economic Growth Slows to 2.5% in August 2025
Buenos Aires, Thursday, 23 October 2025.
Argentina’s economic growth decelerated to 2.5% in August 2025, sparking concerns over its recovery amid inflationary pressures and structural challenges.
Economic Growth Deceleration
Argentina’s economic growth in August 2025 has slowed to 2.5%, as reported by a Reuters poll of analysts. This marks the second consecutive month of deceleration, following a 6.1% increase in June and a 2.9% rise in July, as outlined by Argentina’s National Institute of Statistics and Censuses (INDEC) [1][2].
Sectoral Performance and Challenges
The deceleration in growth can be attributed to weaker performances in key sectors such as agriculture and manufacturing, which saw contractions of 1.4% and 5.1% respectively. Meanwhile, sectors like financial intermediation and hotels and restaurants showed positive growth, with increases of 26.5% and 6.4% respectively [2][3]. This mixed sectoral performance highlights the ongoing challenges faced by Argentina’s economy, including high inflation and structural issues [1].
Implications for Policy and Investment
The slowdown in economic activity poses significant implications for domestic policy and international investment. High interest rates and reserve requirements are reportedly restricting credit growth, further impacting economic performance [1]. Analysts suggest that the upcoming legislative elections on October 26 could influence future economic reforms, with President Javier Milei’s party aiming to gain more seats in Congress to implement market-friendly policies [3].
Looking Ahead
Despite a trade surplus of 921 million USD in September 2025, Argentina’s economic outlook remains uncertain. Imports rose significantly, driven by increases in consumer goods and capital goods, while exports also saw a rise, primarily in primary products and agro-industrial manufactures [4]. The upcoming release of INDEC’s official August EMAE data is expected to provide further insights into the country’s economic trajectory [1].