## Global Markets and Geopolitical Updates: Argentina’s Economy Contracts as Gold Hits Record High
BUENOS AIRES, Jan 21 (Reuters) – Economic momentum in Argentina hit a significant roadblock in November 2025, with data released Wednesday showing the country's economic activity retreated 0.3% compared to the same month last year. This contraction, reported by Argentina’s national statistics agency, marks the first monthly decline registered by Latin America’s third-largest economy this calendar year.
The November performance sharply missed market expectations. Analysts polled by Reuters had widely forecast a 1.7% expansion, making the actual result a stark divergence from the robust 3.2% growth recorded in October.
The downturn was concentrated across several key productive sectors, with five components of the monthly economic activity indicator (EMAE) posting annual declines. The sharpest drop was observed in the fishing sector, which plummeted 25%. Significant slides were also registered in manufacturing, which fell 8.2%, and wholesale and retail commerce, which declined 6.4%. Construction activity also retreated 2.3% during the month.
Despite the disappointing figures, analysts remain cautiously optimistic about the future. Consultancy Orlando Ferreres and Associates, which had initially estimated 1.6% growth for the month, suggested that the overall economic trajectory for 2026 remains favorable.
The data release followed closely on the heels of a high-profile address by libertarian President Javier Milei at the World Economic Forum in Davos. Since taking office in late 2023, Milei has sought to stabilize the nation’s finances through aggressive market deregulation, boosting exports, and slashing public expenditure. His policies have been credited with helping tame the country’s high inflation, which had previously peaked near 290%.
The November slump contrasts with recent positive indicators, including the 3.3% expansion posted in Argentina's third-quarter gross domestic product. Analysts currently forecast an expansion of 3.5% for the final quarter of 2025.
### Financial Records and Policy Outlook
In related financial news, the price of gold set a new all-time high, surpassing the $4,800 per ounce threshold. Market sentiment remains overwhelmingly bullish, with projections suggesting the precious metal is highly likely to break the $5,000 mark before the close of the year.
Meanwhile, US policy updates centered on President Donald Trump’s confident outlook on the domestic economy and his stance on geopolitical dealings. Trump dismissed a recent, minor dip in the US stock market as "peanuts," confidently forecasting that equity values would ultimately double.
Regarding international trade and territorial disputes, the President confirmed that the US had successfully reached a "framework deal" concerning Greenland. Trump clarified his administration’s approach to the territory, emphasizing that he did not wish to employ "excessive force" to secure the agreement, and confirmed that retaliatory tariffs would not be imposed.
