Argentina's economy grew 0.1% in August, below forecasts

Argentina's economy grew 0.1% in August compared with July, after shrinking 2.8% the month before.

The increase was far below analysts' 1.5% forecast, and economic activity was down 1.7% from August 2025.

The slowdown is affecting industries and jobs: manufacturing, construction and retail have weakened, while energy and farm exports have supported activity.

Private-sector formal workers' wages rose faster than inflation for a third month, which could support consumer spending.

A second quarterly contraction could mean a technical recession, after gross domestic product fell in the second quarter and is expected to fall again in the third.

The weaker economy and loss of formal jobs have limited the political gains President Javier Milei hoped to make from lower inflation, and investors are watching growth and employment ahead of next year's presidential election.

Analysts surveyed by Argentina's central bank expect the economy to grow 1.5% in 2026, less than half the 3.2% forecast at the start of the year.