Economic recovery in Argentina boosts car and home purchases

The buying and selling of homes and vehicles has surged, reflecting a rebound in credit, an improvement in purchasing power, and a renewed sense of confidence.

Javier MileiPhoto © X/@ancapchequei

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The Argentine economy is beginning to show tangible signs of recovery that are now evident not only in macroeconomic data but also in daily life.

According to El Economista, in the first months of 2025, the buying and selling of homes and vehicles has surged, reflecting a revitalization of credit, an improvement in purchasing power, and a renewed sense of confidence.

This transformation is due to a set of structural reforms implemented by the government of Javier Milei, which have reduced the fiscal deficit, moderated inflation, eliminated distortions in the financial system, and promoted consumer credit and investment.

Inflation on the decline and more jobs

Monthly inflation, which in December 2023 was around 23%, fell to 2.8% in April 2025, allowing for a recovery of real wages. Meanwhile, the country recorded the highest employment level since records began, and GDP is growing by over 5% annually, consolidating the exit from a prolonged period of stagflation.

Real estate boom: the best March since 2007

In March 2025, there were 62,808 residential property transactions, a 40.6% increase compared to the same month in 2024, marking the best March since 2007. New homes led the surge with a 64.2% growth, while used homes saw a 34.8% increase.

The decline in interest rates and the end of currency exchange restrictions have been key to revitalizing access to mortgage credit, after years of virtual paralysis in the sector.

Record Automotive Market

The used car sector is also experiencing a historic moment. In April 2025, 158,960 vehicles were sold, a 16.7% increase compared to April 2024 and an 11.6% rise from March. The first four months of the year closed with 620,383 cars sold, marking the best April since monthly statistics began, according to the Automotive Trade Chamber (CCA).

The elimination of the currency control and the normalization of the exchange market have favored the return of commercial activity in the interior of the country, where sales even exceed the national average.

Change of expectations: more confidence, more consumption

The improvement in economic expectations is reflected in surveys and the consumer confidence index, which reached its highest level since 2017. More and more Argentines believe that their financial situation will improve, which fosters a virtuous cycle of consumption and investment.

"There is enormous potential ahead," said Alejandro Lamas, secretary of the CCA, in remarks reported by the aforementioned media. "And for the first time in a long time, it seems that Argentina is starting to take advantage of it."

Pending challenges

The government acknowledges that the recovery still needs to be solidified. Maintaining fiscal discipline, continuing the deregulation of key sectors, and promoting productive investment will be essential to ensure that growth is sustainable in the long term.

Despite the ongoing risks, the Argentine economy has taken a turn. And most importantly: this change is already noticeable on the streets, in car dealerships, and at notary offices.

Frequently Asked Questions about Economic Recovery in Argentina

What structural reforms has the government of Javier Milei implemented to improve Argentina's economy?

The government of Javier Milei has reduced the fiscal deficit, moderated inflation, eliminated distortions in the financial system, and favored consumer credit and investment. These measures have been crucial for the country's economic recovery, positively impacting purchasing power and consumer confidence.

How has the real estate market in Argentina improved in 2025?

In March 2025, there were 62,808 home buying and selling transactions, an increase of 40.6% compared to the same month in 2024, marking the best March since 2007. The surge is led by new homes, which saw a growth of 64.2%, while used homes increased by 34.8%. The drop in interest rates and the end of currency exchange restrictions have made access to mortgage credit easier.

What factors have influenced the increase in car sales in Argentina?

The removal of the currency restrictions and the normalization of the exchange market have been key factors in the increase in car sales. In April 2025, 158,960 vehicles were sold, a 16.7% increase compared to April 2024, reaching record figures in the automotive sector.

What is the impact of inflation on the Argentine economy in 2025?

Monthly inflation has decreased significantly, from 23% in December 2023 to 2.8% in April 2025. This reduction has facilitated a recovery of real wages and has contributed to improving consumer confidence and the purchasing power of Argentinians.

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CiberCuba Editorial Team

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