Following the crisis year of 2024, Argentina's economy registered a 4.4 percent growth in gross domestic product in 2025. These figures, announced by the National Institute of Statistics and Censuses, confirm the preliminary assessment from January. President Javier Milei commented on the results as a failure for the "prophets of chaos." The recovery is primarily driven by record harvests in agriculture and the extractive sector.

Strong Rebound After Recession

In 2025, Argentina's GDP grew by 4.4 percent, representing a radical improvement compared to the economy's contraction of 1.8 percent the previous year.

Agricultural and Extractive Drive

Primarily record wheat harvests and raw material extraction drove the growth, while industry and retail still remain in a difficult situation.

Costly Austerity Policy

The economic recovery was possible thanks to President Milei's drastic fiscal policy, which lowered inflation but at the cost of deep belt-tightening and layoffs.

Opponents as Prophets of Chaos

Ultra-liberal President Milei refers to his critics as "prophets of chaos," whose forecasts of economic catastrophe have not materialized.

After a difficult 2024, the Argentine economy rebounded in 2025, recording a GDP growth of 4.4 percent. This growth is drastically different from the recession, which amounted to 1.8 percent the previous year. These data were confirmed by the National Institute of Statistics and Censuses. The country's president, Javier Milei, used these numbers to confirm the validity of his radical economic policy. On platform X (formerly Twitter) he stated: „„Ce chiffre ne va pas plaire aux prophètes du chaos”” — Javier Milei. His rhetoric often contrasts his vision of reforms with all critics, whom he refers to by that term. After decades of inflation, economic instability, and recurring debt crises, Argentina has repeatedly been under the care of the IMF. The election of the ultra-right and ultra-liberal Milei in November 2023 was a shock to the establishment and marked a radical shift in course towards a minimal state and deregulation. The main driver of growth last year turned out to be agriculture, especially record wheat harvests. The financial and extractive sectors also made positive contributions to growth. 4.4% — growth of Argentina's GDP in 2025 It owes this to high commodity prices on world markets and increased demand. Positive data for December confirmed that the recovery continued until the end of the year. [{"aspekt": "GDP Growth (2024)", "przed": "-1.8%", "po": "+4.4%"}, {"aspekt": "Monetary Policy", "przed": "High Inflation", "po": "Drastic Reduction"}, {"aspekt": "Fiscal Policy", "przed": "High Deficit", "po": "Severe Cuts and Austerity"}] However, the recovery is not uniform and not all Argentines feel its effects. The industrial and retail sectors are still in a state of crisis. This is happening despite the overall growth, indicating deep inequalities in the economic recovery. The growth has been achieved at a high social cost. To curb inflation, the Milei government implemented a drastic austerity program. It included deep cuts in public spending, reductions in subsidies, and mass layoffs in the public sector. Although inflation indeed began to fall, this policy has met with sharp social protests and a significant deterioration in the living conditions of many citizens.

Mentioned People

  • Javier Milei — President of Argentina, an ultra-liberal economist who implemented a radical austerity policy