Argentina’s ailing economy has shown strong signs of recovery, recording a 5.8 per cent GDP surge in the first quarter of 2025, as opposed to the 1.6 per cent in Q1 2024, under President Javier Milei’s “chainsaw” approach to curb excessive government spending. 

Data from the National Institute of Statistics and Census on Monday revealed that the Argentine GDP now stood at 5.8 per cent, a staggering turnaround from the same period in 2024, when it shrank by 1.7 per cent.

Indec attributed the GDP surge to investment and private consumption, which grew by 31.8 per cent and 11.6 per cent respectively. Although exports rose by 7.2 per cent, its impact was swallowed up by imports, still standing at 42.8 per cent.

The economy of Argentina, battered by inflation so severe that prices of items were constantly adjusted at supermarkets, has begun to stabilise, figures from the data institute showed nearly two years after Mr Milei’s election.

Mr Milei’s austerity measures saw him devalue the peso, shrink government ministries and sell off two national aircraft. 

He also slashed the number of official vehicles and drivers by half to reduce government spending.

In December 2023, the Argentine president announced his decision to fly commercial aircraft to set an example for cost-cutting and further reduce government expenditure.