Argentina's Economic Turnaround: May's Unexpected Growth

Argentina experienced a 2.3% increase in economic activity in May, breaking a six-month streak of contraction. The agriculture and forestry sector showed strong recovery post-drought, while mining also improved. However, construction, manufacturing, and commerce lagged. President Milei aims to reform the struggling economy.

In an unexpected development, Argentina's economic activity saw a 2.3% rise in May compared to the previous year, according to the country's official statistics agency. This marks the conclusion of six months of contraction.

The boost in economic activity came as a surprise to analysts who had anticipated a continued decline. The agricultural and forestry sector experienced a remarkable recovery, growing over 100% from the year before, helped by relief from a severe drought. Mining also showed positive growth with an 11.0% increase.

However, the construction, manufacturing, and commerce sectors did not share in the overall improvement, registering slower performance. President Javier Milei, who assumed office in December, has pledged to undertake significant reforms to revive Argentina's troubled economy.

(With inputs from agencies.)