Caputo rejects rumors of recession and says Argentine economy boasts record growth

Argentine Economy Minister Luis Caputo said that the country is experiencing “record” economic activity and rejected rumors of a potential recession, following positive economic statistics released on Thursday. However, he admitted that growth might not reach all sectors equally. “Argentina’s economy is going through a process of growth, sustained by concrete numbers, and not sensations,” Caputo said, questioning press reports about a potential recession amid a growth in unemployment figures. Speaking in an interview with libertarian streaming channel Carajo, Caputo said that the latest data shows record numbers for economic activity, consumption and exports. Argentina’s economic activity grew by 1.9% in January interannually and 0.4% compared to December 2025, according to the national statistics institute, INDEC. With a 25.1% growth, the agriculture, livestock, hunting, and forestry sector had the greatest positive impact on the index’s year-over-year change, followed by mining and quarrying, which saw a 9.6% increase. The sector that recorded the highest interannual increase was fishing, which grew by 50.8% and recovered after suffering a major decline last year. According to critics, these industries generate little employment, while those that require more labor have fallen, such as wholesale and retail trade, and manufacturing. They also point out that even some sectors that are growing, like oil and gas, and financial intermediation, have seen a drop in employment. Despite the positive numbers, Caputo acknowledged that “improvement will not reach all sectors in the same way” and that some will take more time to recover from the low activity they are experiencing. “This is because we are going through a model change from a protectionist scheme to a pro-business one, which is more competitive,” Caputo said. “In that process, some businesses adapt and grow, while others that are used to a closed market are facing difficulties.” Some companies, according to the minister, even decided to “give up before competing in equal conditions” with others. He stated this was the case of tire manufacturer Fate, which shut down in February, firing over 900 workers. “Workers were not millionaires, but their boss, Javier Madanes Quintanilla, was, and chose not to adapt to the new model,” Caputo said. This is not the first time the government has antagonized Fate’s owner. Earlier this month, Milei accused Madanes Quintanilla of shutting down the factory and laying off its employees as an “extortion” to force the government to approve antidumping measures that limit foreign imports, especially from China. During the Carajo interview, Caputo acknowledged that “not all figures are positive,” referring to the rise in unemployment and inflation. However, he said it is part of a transition process. Unemployment in Argentina went up to 7.5% in the last quarter of 2025, growing by one percentage point interannually. The inflation rate for February was 2.9%, the same as January. The inflation has not gone down for nine consecutive months. “We don’t deny numbers that don’t favor us, but when you look at it as a whole, speaking of a depression is false,” he affirmed. Caputo said that the labor reform approved in Congress in February, which flexibilizes hiring conditions and gives fiscal benefits to employers who register their employees, will help increase employment gradually. “Rome was not built in one day, like the president says,” he said. The minister added that some opposition governors have begun to back his economic program, which will help maintain stability and attract long-term investments. “Today, Argentina is much better than in 2023, when we were on our way to becoming Venezuela.”