Goldman Sachs has lowered its 2026 growth forecast for Argentina from 3% to 2.7%, citing weaker-than-expected economic data in April and May and warning of a possible contraction in the second quarter. Despite the downgrade, the bank described the economy as expanding at a moderate pace and praised the government's fiscal discipline, reserve accumulation, and disinflation, projecting annual inflation to close near 29%. The revision comes as investor focus shifts toward President Javier Milei's reelection prospects ahead of October 2027 elections, with Goldman cautioning that "the margin for error is narrow" — even as all three major credit rating agencies upgraded Argentina's sovereign debt within the past three months for the first time in a decade.