Argentina’s economy grew by 2% year-on-year in Q4 2024, exceeding expectations and ending a six-quarter decline. Key drivers included improvements in agriculture, manufacturing, and trade, although construction and utilities faced setbacks. Quarterly GDP rose by 1.1% after a prior 3.9% increase.
In the final quarter of 2024, Argentina’s economy experienced a notable growth of 2% year-on-year, surpassing initial expectations of a 1.7% increase. This performance marks an important recovery following a 2.1% contraction in the preceding quarter, ending a streak of six consecutive quarters of economic decline.
The recovery has been largely attributed to a revival in the agricultural sector, where growth improved to 1.6%, in contrast to a decline of 2% in the third quarter. Additionally, manufacturing production increased by 0.7% after facing a significant drop of 6.2% previously, while wholesale and retail trade rose by 2.5%, rebounding from a 5.8% contraction.
Other sectors also demonstrated positive developments, with transportation experiencing a 2% growth against a slight decline of 0.3% in the earlier quarter. Financial intermediation showed a remarkable growth of 8.4%, compared to a decrease of 2% prior. Declines were recorded in construction, which fell by 12.4%, and utilities, which experienced a decrease of 1%.
On a quarterly basis, Argentina’s GDP expanded by 1.1%, following a substantial growth of 3.9% in the previous period.
The recent data indicates a significant rebound in Argentina’s economy, driven by the agricultural sector and recovery across various industries, marking a welcome end to a prolonged economic downturn. However, some sectors still face challenges, particularly construction and utilities. Continued monitoring of these trends will be essential for assessing future economic stability.
Original Source: www.tradingview.com
