Argentina’s economy expanded for a second consecutive quarter under President Javier Milei, with GDP growth of 1.4% in Q4 2024 and 2.1% year-on-year. A new IMF agreement is expected, aimed at lifting capital controls. Economists predict a 4.8% growth in 2025.
In Argentina, President Javier Milei has overseen a consecutive second quarter of economic growth, bolstering his prospects in the forthcoming midterm elections. The country’s gross domestic product (GDP) increased by 1.4 percent in the quarter ending December 2024, surpassing the analyst consensus of 1.3 percent, and reflecting a year-on-year growth of 2.1 percent, according to government reports released on Wednesday.
Between July and September 2024, Argentina recorded a significant quarter-on-quarter GDP growth of 4.3 percent, demonstrating a remarkable recovery after a prolonged period of contraction. Current indicators reveal positive developments, including wages outpacing inflation since April, gradual job creation, and a decline in poverty rates following the dramatic rise observed when President Milei assumed office.
A new financial agreement with the International Monetary Fund (IMF) is imminent, with preliminary approval anticipated from the Chamber of Deputies later today. The ongoing negotiations for this loan aim to replenish the central bank’s financial reserves, facilitating the removal of capital controls, which have been a major barrier to Argentina’s economic growth.
Forecasts from economists consulted by Argentina’s Central Bank project an economic growth of 4.8 percent for the year 2025, indicating continued optimism for the country’s economic trajectory.
In summary, Argentina is experiencing a notable economic rebound under President Javier Milei, with consecutive quarters of growth and positive indicators such as improved wages and job creation. The anticipated agreement with the IMF is expected to further enhance economic stability by addressing critical financial barriers. Overall, the outlook for the future remains optimistic, with economists predicting continued growth in 2025.
Original Source: www.batimes.com.ar
