Economic Growth and Its Impact on Various Sectors
Argentina's economy shows signs of improvement in June after a slow first half of the year, with mining and agriculture driving growth
The economic activity in Argentina has rebounded, showing a 0.8 percent increase in June. This comes after two consecutive months of decline, ending an uneven first half of the year. According to the INDEC national statistics bureau, the monthly economic activity index provides an early indication of gross domestic product.
Economic Activity Index
The index showed that activity was 2.7 percent higher in June than in the same month of 2025. This was the second-largest year-on-year increase since March, when the index rose 6.2 percent. The trend-cycle series, which strips out seasonal factors, increased 0.2 percent.
The growth in economic activity can be attributed to various sectors. Mining was a major driver of the increase, with activity in the sector rising 15.6 percent year-on-year. Together with agriculture, it contributed 1.1 percentage points to the overall index. The following table shows the year-on-year growth rates of different sectors:
| Sector | Year-on-Year Growth |
|---|---|
| Mining | 15.6% |
| Agriculture | 4.6% |
| Industry | 1.9% |
| Commerce | 0.8% |
| Construction | 2.8% |
| Fishing | more than 240% |
Sectoral Growth
The growth in mining and agriculture has been significant, with both sectors contributing to the overall increase in economic activity. However, other sectors such as industry, construction, and commerce have also shown positive growth. Fishing recorded an especially sharp increase of more than 240 percent year-on-year, largely due to the revival of maritime fishing after a labour dispute in June 2025.
The International Monetary Fund has forecast that Argentina's GDP will grow 3.5 percent in 2026, down from the 4.4 percent growth recorded in 2025. While some have hailed the economic growth as a positive sign, others have cautioned that it should be interpreted with caution. As Diego Piccardo, chief economist at the Libertad y Progreso Foundation, said, the improvement is less substantial than a first reading might suggest.
Impact on Employment
The growth in different sectors has varying implications for employment. While mining and agriculture are growing rapidly, they are capital-intensive and generate relatively few jobs per unit of output. On the other hand, industry, construction, and commerce are more labour-intensive and account for the bulk of registered private-sector employment. As Sergio González, head of asset management at Cohen, pointed out, the difference in growth rates between these sectors matters because it has significant implications for employment.
