Narayan AmmachchiArgentina is projected to become Latin America’s fastest-growing economy in 2025, with BBVA Research forecasting a robust 5.5% expansion in the country’s GDP.
This far outpaces the 1.9% average growth predicted for the broader region, according to the financial institution’s latest report.
The report highlights that while global uncertainty continues to weigh on regional investments, Argentina’s economic cycle stands out as a beacon of growth.
A key contributor is the Large Investment Incentive Regime, designed to attract foreign investment.
BBVA Research underscored Argentina’s sharp rebound compared to the sluggish growth anticipated for its main trading partners.
The country’s improving economic fundamentals — strengthened fiscal discipline, the easing of foreign exchange restrictions, and a more structured monetary framework — are credited for this turnaround. The recent agreement with the International Monetary Fund is also seen as reducing concerns over the Treasury’s solvency.
BBVA expects Argentina’s growth momentum, which began in the latter half of 2024, to carry through 2025. However, it notes that growth will remain uneven across sectors.
On the inflation front, BBVA Research commended the government’s adoption of a floating exchange rate within adjustable bands, which has stabilized prices more effectively than anticipated. Inflation in May marked the lowest in five years. Economists at BBVA project inflation to moderate to 30% in 2025 and further decline to 18% in 2026.
Add comment