Argentina's economy grew by 0.4% month-on-month and 1.9% year on-year in January, matching Bloomberg consensus, with the EMAE activity indicator reaching a new all-time high in both seasonally adjusted and trend-cycle series. Agriculture, fishing, and mining contributed significantly to the expansion, while manufacturing fell 2.6% and retail trade dropped 3.2%. This growth is seen as a two-speed economy where resource sectors boom but labor-intensive industries lag behind. President Javier Milei's approval rating has dropped to 36%, his lowest since taking office, while inflation remained near 3% monthly in February, exceeding his target of sub-1% for 2026. The data suggests that the future of Argentina's economic model depends on whether the resource boom can eventually increase manufacturing and consumer spending, or whether this two-step economy becomes a permanent feature of the austerity model.