Official INDEC data shows that private consumption reached an all-time high, accounting for much of the 4.4% GDP growth in 2025 and consolidating itself as the primary engine of economic activity.

In a context of public debate over the economic situation, official data reveals a reality that differs from the perceptions held by some analysts and political sectors. According to national accounts, seasonally adjusted private consumption reached its series maximum, growing 7.9% in 2025 and establishing itself as the main driver of economic recovery. This trend is becoming increasingly visible in day-to-day city activity, where street dynamics align with the aggregate data of the national economy.

According to the National Institute of Statistics and Censuses (INDEC), the Argentine economy grew 4.4% in 2025. This result is particularly significant for the National Government, which projects a sustained recovery into 2026 following two initial years marked by fiscal adjustment and inflation reduction efforts.

The year-on-year increase in Gross Domestic Product (GDP) was explained by:

  • Private Consumption: +7.9%

  • Public Consumption: +0.2%

  • Exports: +7.6%

  • Gross Fixed Capital Formation: +16.4%

Measured at current prices, private consumption was the most relevant component of aggregate demand, accounting for 70.0% of the GDP.

Sectors Driving the Activity

From the supply side, several key sectors showed significant growth during the year:

  • Financial Intermediation: +24.7%

  • Mining and Quarrying: +8.0%

  • Hotels and Restaurants: +7.4%

  • Agriculture and Livestock: +6.2%

  • Construction: +4.3%

Conversely, some sectors saw declines, including Fishing (-15.2%), Private Households with Domestic Service (-1.1%), and Social/Health Services (-0.2%).

Economy Minister Luis Caputo celebrated the results on X (formerly Twitter), stating: “GDP at constant prices reached a historic high in 2025, standing 1.1% above the 2022 average (the previous high). 12 out of 16 activity sectors recorded increases compared to 2024.”

Performance in the Final Quarter

During the fourth quarter of 2025, GDP grew by 0.6% seasonally adjusted compared to the previous quarter. The momentum primarily came from Exports (+5.0%) and Private Consumption (+1.7%).

This 4.4% overall growth in 2025 represents a major reversal of the recent recessive cycle, as GDP had fallen by 1.3% in 2024 and 1.9% in 2023. INDEC noted that the year’s dynamism responded largely to export performance and the rebound in private consumption, alongside higher demand for imported goods and services.

Future Outlook

While December showed a strong recovery of 1.8%, some private consultants like Equilibra and Orlando Ferreres & Asociados anticipate a transition phase for early 2026. Experts suggest a “dual reality” where sectors like energy, mining, and agriculture remain highly dynamic, while labor-intensive sectors like retail and industry may see a more moderate expansion contingent on the continued recovery of family incomes and credit availability.