(Bloomberg) -- Argentina’s economy expanded more than expected in November, continuing to show signs of recovery after surpassing growth forecasts in the third quarter.
Economic activity rose 0.9% from October, more than the 0.4% median estimate of economists surveyed by Bloomberg. From a year ago, activity grew 0.1%, also more than expected, according to government data published Thursday.
South America’s second-largest economy is showing signs of improvement after a deep slump exacerbated by President Javier Milei’s austerity.
Wages in Argentina grew 4.6% in October from September, surpassing monthly inflation for the seventh straight month after price increases wiped out paychecks earlier in the year. With wages picking up, the government estimates that the poverty declined below 39% in the third quarter after surpassing 54% at the start of the year.
Fishing, finance and mining helped drive annual growth in November, while construction and manufacturing posted declines. Argentina’s third-quarter growth was driven by capital expenditures, consumer spending, and exports.
Beyond wages, job growth is slowly picking up. Private sector employment gained for the fourth consecutive month in October. The International Monetary Fund estimates gross domestic product will expand 5% this year.
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