Argentina's Economic Resurgence: A 6.5% Leap Forward

Argentina's economy expanded by 6.5% in January, marking the highest growth since mid-2022. The increase outpaced December's revised 6% growth and surpassed analysts' expectations. Key sectors like financial intermediation and retail drove the growth, reflecting a potential economic turnaround amid austerity measures enforced by President Javier Milei.

Argentina's economic activity surged by an impressive 6.5% in January compared to the same period last year, reaching its highest year-on-year increase since the middle of 2022, according to official data released on Thursday.

The Latin American nation's economy recorded its third consecutive month of growth, with the pace of expansion accelerating from a revised 6% in December and surpassing the 4.7% growth forecast by analysts surveyed by Reuters. Notably, financial intermediation, alongside wholesale, retail, and repairs, were the primary contributors to this national growth, as per the statistics agency INDEC.

Argentina's struggling economy appears to be on the mend over the last few months after substantial strain from the harsh austerity measures implemented by President Javier Milei. On a monthly basis, economic activity rose by 0.6% in January, marking the fourth straight month of growth, albeit slightly down from a revised 0.8% increase in the previous month.

(With inputs from agencies.)