Argentina’s economy shrank by 1.7% in 2024, yet recorded a fourth-quarter growth of 1.4%. Year-on-year GDP for October to December rose by 2.1%, exceeding forecasts. Despite early-year industrial slowdown due to austerity measures, a rebound occurred later, with inflation decreasing to 66.9%.
In 2024, Argentina’s economy contracted by 1.7% when compared to the previous year, according to a report from the country’s statistics agency. Despite this overall shrinkage, the economy demonstrated resilience with a 1.4% expansion in the fourth quarter, marking the second consecutive quarterly growth.
The year-on-year data for the last quarter revealed a 2.1% increase in Argentina’s gross domestic product (GDP), surpassing the expectations of analysts who predicted a 1.7% growth. This positive outcome was noted in seasonally-adjusted terms compared to the previous quarter.
Argentina’s economic difficulties at the beginning of 2024 were attributed to slowed industrial activity and strict austerity measures implemented by libertarian President Javier Milei. However, the latter months showed signs of recovery and improvement in economic conditions.
Meanwhile, inflation rates, which had reached significant highs, decreased to 66.9%. The government has been actively working to mitigate economic challenges by removing capital controls, although citizens continue to face escalating living costs and reductions in public services.
In summary, Argentina’s economy faced a contraction of 1.7% in 2024, yet exhibited growth in the latter part of the year with a notable 1.4% increase in the fourth quarter. Analysts had projected lower growth than the actual 2.1% year-on-year increase observed during this period. The government’s efforts to control inflation and adjust economic policies are ongoing, although challenges persist in terms of cost of living and public services.
Original Source: money.usnews.com
