BUENOS AIRES, Jan 21 (Reuters) – Argentina’s economic activity shrunk 0.3% in November compared with the same month last year, marking the first monthly contraction of 2025, data from Argentina’s national statistics agency showed on Wednesday.

The figure for Latin America’s third-largest economy was below the 1.7% figure predicted by analysts polled by Reuters, and well below the 3.2% recorded in October.

Five of the sectors that make up the monthly economic activity indicator (EMAE) posted annual declines, led by fishing which fell 25%, while manufacturing slid 8.2%, wholesale and retail commerce declined 6.4% and construction fell 2.3%.

“Despite November’s disappointing data, the outlook for 2026 is positive,” said consulting firm Orlando Ferreres and Associates, which had estimated 1.6% growth for the month.

Since taking office in late 2023, libertarian President Javier Milei looked to fix the South American’s No. 2 economy by boosting exports and slashing public spending. His policies have helped bring down inflation from a peak of nearly 290%.

The data came hours after Milei spoke at the World Economic Forum in Davos, where he blasted socialist governments and spoke in favor of cutting down market regulation.

Last month, Argentina posted a 3.3% expansion in its third quarter gross domestic product. Analysts have predicted 3.5% growth for the last quarter of 2025.

(Reporting by Walter Bianchi and Natalia Siniawski; Editing by Sarah Morland)