Argentina’s economy contracted by 1.7% in 2024, though it expanded by 1.4% in the last quarter, with a year-on-year growth of 2.1%. The economy faced challenges from austerity measures, but inflation decreased to 66.9%.
In 2024, Argentina’s economy experienced a contraction of 1.7% compared to the previous year, as reported by the nation’s statistics agency. However, the economy showed signs of recovery in the last quarter, expanding by 1.4% in seasonally-adjusted terms, marking the second consecutive quarterly increase.
The gross domestic product (GDP) of Argentina demonstrated a year-on-year increase of 2.1% during the October to December period, surpassing analysts’ expectations of a 1.7% growth. Despite initial economic struggles at the beginning of 2024, driven by a decline in industrial activities due to stringent austerity measures enforced by President Javier Milei, the economy rebounded in the latter part of the year.
Argentina’s inflation rate has moderated to 66.9%, a significant development as the government implements reforms aimed at addressing the underlying economic challenges. Nonetheless, the population continues to grapple with escalating costs and reductions in public services, signaling ongoing difficulties in the economic landscape.
In conclusion, Argentina’s economy faced a 1.7% decline in 2024, although a significant recovery was observed in the last quarter. This rebound included a GDP growth of 1.4% quarterly and 2.1% year-on-year, exceeding projections. While inflation has decreased to 66.9%, the nation still contends with rising costs and diminished public services, underscoring the economic struggles faced by its citizens.
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