Argentina’s economy shrank 1.7% in 2024, despite a late-year rebound with a 1.4% quarterly expansion in Q4. Year-on-year growth reached 2.1%, exceeding expectations. Early 2024 faced challenges due to austerity measures, but inflation slowed to 66.9%.
Argentina’s economy experienced a contraction of 1.7% in 2024 compared to the previous year, according to the national statistics agency, despite showing a positive trend late in the year. The country’s gross domestic product (GDP) expanded by 1.4% in the fourth quarter compared to the third quarter, marking consecutive quarterly growth. Furthermore, year-on-year, GDP growth reached 2.1% from October to December, surpassing analysts’ expectations of 1.7%.
In the early months of 2024, Argentina’s economy struggled as industrial activity slowed due to stringent austerity measures implemented by President Javier Milei. However, a recovery was noted towards the end of the year, reflecting some resilience in the economic landscape. Amid these challenges, the nation witnessed a reduction in inflation rates to 66.9%, as the government aimed to address economic difficulties by removing certain capital controls. Nevertheless, residents continue to face rising costs and reductions in public services, highlighting the ongoing economic challenges in Argentina.
In summary, while Argentina’s economy contracted overall by 1.7% in 2024, a notable rebound was experienced in the latter part of the year with consecutive quarterly expansions. Year-on-year GDP growth in the fourth quarter surpassed predictions. Despite these improvements, the country continues to grapple with high inflation and the aftermath of austerity measures, leaving the population in a precarious financial situation.
Original Source: www.tradingview.com
