(Bloomberg) -- Argentina’s economy expanded more than expected in October, continuing to show signs of recovery after surpassing growth forecasts in the third quarter too.

Economic activity rose 0.6% from September, more than the 0.2% median estimate of economists surveyed by Bloomberg. From a year ago, activity fell 0.7%, according to government data published Friday.

Wages in Argentina also grew 4.6% in October from September, surpassing monthly inflation for the seventh straight month after price increases wiped out paychecks earlier in the year.

Argentina exited a recession in the third quarter with the recovery driven by capital expenditures, consumer spending, and exports. Mining, finance and agriculture helped drive annual growth in October, while construction and manufacturing posted declines.

South America’s second-largest economy is showing signs of improvement after a deep recession exacerbated by Milei’s austerity.

Beyond wages, job growth is slowly picking up and the government estimated Thursday that poverty declined below 39% of the population in the third quarter after surpassing 54% at the start of the year.

Economists surveyed by Argentina’s central bank estimate gross domestic product will contract 3% this year, reversed by 4.2% growth in 2025.

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