Argentina’s economy shrank 1.7% in 2024 but saw a quarterly rebound of 1.4% in Q4 and 2.1% year-on-year growth for that period, despite ongoing inflation challenges and austerity measures.
In 2024, Argentina’s economy contracted by 1.7% compared to the previous year, according to the country’s statistics agency. However, the nation experienced a quarterly expansion in the last quarter of the year, marking the second consecutive quarter of growth. Notably, the gross domestic product (GDP) increased by 1.4% in the fourth quarter when adjusted for seasonality, indicating positive economic movement.
During the October to December period, Argentina’s GDP also grew by 2.1% year-on-year, surpassing analysts’ expectations of a 1.7% increase. This growth comes on the heels of economic challenges faced earlier in the year, primarily due to an industrial slowdown and stringent austerity measures implemented by President Javier Milei.
Despite these improvements, the economy has been struggling with high inflation rates, which have decreased slightly to 66.9%. The government is working to alleviate economic challenges by removing capital controls; however, citizens continue to grapple with increasing costs and reductions in public services.
In summary, while Argentina’s economy faced a 1.7% contraction in 2024, there were signs of recovery in the fourth quarter with a GDP growth of 1.4% quarter-on-quarter and 2.1% year-on-year. The nation is navigating significant inflationary pressures and austerity measures as it seeks to stabilize its economic landscape.
Original Source: www.tradingview.com
