BUENOS AIRES, Dec 16 (Reuters) - Argentina's economy expanded 3.3% in the third quarter from the previous quarter, official data showed on Tuesday, marking its fourth straight quarterly gain, but below analysts’ expectations.
Analysts had forecast growth of 3.5% for the September to December period.
The year-on-year increase was driven mainly by a sharp rise in gross fixed investment, with gains also recorded in financial intermediation, mining and quarrying, and the hospitality sector, Argentina’s
national statistics agency INDEC said in a report.
In seasonally adjusted terms, GDP grew 0.3% compared to the second quarter of the year, INDEC added.
President Javier Milei’s party secured a commanding win in the midterm legislative elections in late October, reflecting broad support for his economic agenda despite the government's harsh austerity measures. Argentine assets rose sharply immediately following the midterm victory.
Economists are watching how Latin America’s third-largest economy consolidates its recovery after exiting recession late last year, with domestic consumption and industrial output still under pressure.
Analysts still warned that Milei's stronger-than-expected midterm showing underscores voter concerns about a return to past economic crises and a willingness to give his high-stakes economic overhaul more time, despite unease over austerity.
The government expects the economy to grow 5.4% in 2025, while the central bank’s latest Market Expectations Survey (REM) forecasts growth of 4.4% for the year.
(Reporting by Jorge Otaola and Walter Bianchi, Writing by Iñigo Alexander, Editing by Natalia Siniawski)
