Argentina’s economy grew by 2% year-on-year in Q4 2024, exceeding expectations and marking a recovery from prior contractions. Major contributing sectors included agriculture and manufacturing, while construction and utilities declined. Quarterly, the GDP rose by 1.1%.
In the December quarter of 2024, Argentina’s economy exhibited a significant resurgence, achieving a year-on-year growth of 2%. This positive performance exceeded forecasts of a 1.7% increase and marked a recovery from a previous contraction of 2.1%. The resurgence concludes a streak of six consecutive quarters of economic decline, primarily propelled by improvements in the agriculture sector, which grew by 1.6% compared to a decline of 2% in the prior quarter.
Additional sectors also demonstrated noteworthy gains, including manufacturing production at 0.7%, up from a sharp drop of 6.2% previously. Wholesale and retail trade rose by 2.5%, recovering from a decline of 5.8%. Furthermore, the transportation sector registered a growth of 2%, compared to a minor decrease of 0.3%, while financial intermediation surged by 8.4%, recovering from a 2% contraction.
Conversely, the construction sector continued to face challenges, with a decline of 12.4%, albeit slightly improved from the -15.2% recorded earlier. Utilities also suffered a dip of 1%, down from an increase of 0.6%. On a quarterly basis, Argentina’s GDP expanded by 1.1%, following a notable growth of 3.9% in the preceding period.
Argentina’s economy demonstrated remarkable growth of 2% in the December quarter of 2024, surpassing prior expectations and ending a prolonged period of decline. While certain sectors rebounded significantly, particularly agriculture, challenges remain in others such as construction. Overall, the GDP’s quarterly increase of 1.1% reflects a positive shift in the country’s economic trajectory.
Original Source: www.tradingview.com
