Argentina's economy contracts 0.6% in second quarter

The economy contracted 0.6% in the second quarter of 2026, its first decline in two years, according to Bloomberg Línea Argentina on its Instagram account. Over the same period, consumption fell 2.4%.

Faced with this slowdown and weakness in the labor market, the government of Javier Milei cut its growth forecast for 2026 from 5% to 3%. The contraction comes as the country enters the countdown to the 2027 legislative and presidential elections.

To gauge market confidence in sovereign debt, attention turns to the country risk index compiled by J.P. Morgan. One basis point equals one hundredth of a percentage point. The index fell from a high of 588 basis points in March to 419 in July, before rising again to 465 basis points in August.