Argentina’s economy grows by 3.9% in the third quarter compared to the second quarter by Reuters

BUENOS AIRES (Reuters) – Argentina’s economy recorded in the July-September period its first economic expansion on a quarterly basis since entering a technical recession at the end of 2023, but contracted again on an annual basis, official data showed on Monday.

GDP expanded by 3.9% in the third quarter on a seasonally adjusted basis compared to the second quarter, after three consecutive quarter-on-quarter declines.

Compared to the previous year, GDP fell by 2.1%, the sixth consecutive contraction. This compares with analysts’ expectations of a decline of 2.6%.

Argentina’s economy has faltered as industry slows amid a harsh austerity campaign by liberal President Javier Miley.

Miley’s administration cut social spending, launched mass layoffs in the public sector, and one of the world’s highest annual inflation rates fell to 166%. But the economy slowed and poverty rates rose to more than 50%.