Argentina: Seven Economic Sectors Grew in January: Which Ones and How Much They Improved

The beginning of 2025 has shown a significant difference compared to the start of 2024, with statistical data confirming this positive trend. According to a private report, economic activity grew by 6.6% year-on-year in January, with seven sectors experiencing growth and only four sectors declining. The study, conducted by the consulting firm Orlando J. Ferreres, also indicates a 0.1% monthly seasonally adjusted growth compared to December.

Key Sectors with Notable Growth

1. Financial Intermediation: This sector saw the most substantial improvement, growing by 22.4% in January 2025 compared to the same month in 2024. The financial sector’s performance has significantly improved due to lower interest rates and slowing inflation.
2. Mining and Quarrying: This sector experienced a 13.9% year-on-year growth, the highest since mid-2022. The production of crude oil and natural gas both advanced by 11.2%, with related services growing by 25.2%.
3. Wholesale and Retail Trade: This sector recovered by 9.2% compared to January 2024. The Argentine Confederation of Medium Enterprises (CAME) reported a 25.5% year-on-year increase in sales for January.
4. Manufacturing Industry: The manufacturing sector grew by 6.5%, although it saw a 0.6% decline in the monthly seasonally adjusted variation. Key contributors included machinery and equipment, automotive production, food processing, and refineries.
5. Real Estate, Business, and Rental Activities: This sector improved by 3.2%, reflecting a steady recovery in the real estate market.
6. Transport, Storage, and Communications: This sector grew by 2.3%, driven by increased demand for logistics and communication services.
7. Agriculture, Livestock, Hunting, and Forestry: This sector saw a slight increase of 0.4%, with agricultural activities growing by 0.8% and livestock declining by 0.5%.

Sectors Facing Challenges

Despite the overall positive trend, four sectors experienced declines in January:

1. Construction: This sector fell by 0.4%, continuing its low activity levels from the previous year.
2. Public Administration and Defense: This sector contracted by 0.5%.
3. Electricity, Gas, and Water Supply: This sector also faced a slight decline.

Conclusion

The Argentine economy has shown resilience and growth in the first month of 2025, with several key sectors leading the way. The financial intermediation, mining, and trade sectors have demonstrated significant improvements, contributing to the overall positive economic outlook. However, challenges remain in the construction and public administration sectors, highlighting the need for continued efforts to support these areas.