By Walter Bianchi
BUENOS AIRES, Feb 23 (Reuters) – Argentina’s economic activity likely rose 0.5% in December compared with the same month a year earlier, according to the median forecast of analysts polled by Reuters.
This would mark a rebound after economic activity shrank 0.3% in November on the same annual basis.
The indicator anticipates the trajectory of gross domestic product (GDP) in South America’s No. 2 economy, and is closely watched by economists and the business sector.
“The government prioritized the exchange rate, inflation and overall macroeconomic stability at the expense of economic dynamism,” said Pablo Besmedrisnik of VDC consultancy.
President Javier Milei has been able to dramatically reduce inflation through sharp cost-cutting measures. He is seeking to revive activity in sectors linked to industry, consumption and construction, which analysts say remain at low levels.
His libertarian government is working on passing sweeping labor reform that it argues will boost the economy and create more formal jobs. It has faced strong opposition from unions who argue the changes would revoke key workers’ rights.
While the median estimate of analysts polled by Reuters pointed to a 0.5% rebound in December, the mean average predicted a 0.6% advance.
“The economic activity data for December would consolidate an annual growth of the gross domestic product of 4.3%, which would be lower than what was expected at the beginning of 2025,” said agricultural group CREA.
Argentina’s national statistics office INDEC will publish the data on Tuesday.
(Reporting by Walter Bianchi; Writing by Sarah Morland)
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