INDEC Reports First Quarterly GDP Contraction Since 2024, Clouding Milei's Recovery Story

INDEC reported that Argentina's GDP contracted 0.6% quarter-on-quarter in Q2 2026 (April–June), the first quarterly contraction since 2024, driven by a 2.4% drop in private consumption, a 2.3% fall in public consumption, and a 0.8% decline in investment. Annual growth still stood at 2%, but the government cut its full-year 2026 GDP forecast to 3% from an earlier 5% projection, while private economists surveyed by the Central Bank expect growth closer to 2%. The data renewed concerns about the durability of Milei's economic recovery a year out from his 2027 reelection bid.