Argentina’s Gross Domestic Product (GDP) grew 2.3% year-on-year in the first quarter of 2026 and 0.7% compared to the final three months of 2025, reaching a “new all-time high” for a first quarter, according to Economy Minister Luis Caputo.

Growth was driven primarily by private consumption, which reached a record level.

However, investment fell sharply, dropping 11.6% year-on-year and 1.7% compared to the previous quarter, according to data released on Tuesday by the national statistics agency INDEC.

The report also showed exports rose 9.8% in the first quarter compared to the same period in 2025, making them the strongest-performing component of demand. However, exports declined 3.1% relative to the final quarter of last year.

On the supply side, the sectors that contributed most to GDP growth were agriculture and livestock, which expanded 18.1%, and mining — including the energy sector — which grew 12.3%. Financial services rose 7.5%.

Private consumption, the largest component of GDP — which entails the acquisition of goods and services, both domestic and imported — increased 2.7% year-on-year. 

INDEC said the expansion was “largely driven by higher imports of goods,” including vehicles and other consumer products.

Although GDP reached a new all-time high for a first quarter in absolute terms, on a per capita basis the indicator remained below levels recorded throughout most of the 2011–2018 period and was 4.6% below the peak reached in early 2012.

Which sectors declined?

Public spending fell 0.9%, while imports dropped 7.5%. Manufacturing contracted 1.7%, marking the largest sectoral decline, while commerce slipped 0.3%.

Agriculture, mining and financial services — the three sectors leading the recovery — accounted for 1.84 percentage points of the economy’s 2.3% year-on-year expansion.

Meanwhile, manufacturing, commerce and construction — which together represent nearly one-third of economic activity and 44% of registered private-sector employment — remain below their 2023 levels.

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Milei’s reaction

President Javier Milei celebrated the GDP figures during a speech at an event hosted by the right-wing think tank Fundación Faro. 

Newly appointed presidential spokesperson Adrián Ravier sat in the front row alongside Cabinet Chief Manuel Adorni, who is facing scrutiny over allegations of illicit enrichment.

“Among the absurdities we have had to endure recently, journalists and ‘serious analysts’ claimed the economy was trapped in a deep depression and that consumer spending had collapsed,” Milei said.

“But today all those lies have been debunked. The first-quarter GDP figures were released, showing growth of 2.3% compared to the same period last year,” he added.

Spain

The president’s remarks came hours before he departed for Spain on a trip aimed at meeting business leaders and promoting investment opportunities in Argentina. 

Milei is also scheduled to deliver a lecture on economics at the Universidad CEU San Pablo, where he will receive an award from the institution.

The visit will be Milei’s sixth trip to Spain since taking office. He is expected to remain in Madrid until Saturday and, as on previous visits, has no meetings scheduled with socialist Prime Minister Pedro Sánchez — with whom he has maintained a public feud — or King Felipe VI.

On June 30, Milei is set to attend the regional trade bloc Mercosur leaders’ summit in Paraguay. He is also expected to travel to the United States for Independence Day celebrations on July 4.

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