Argentina’s economy grew by 2% year-on-year in Q4 2024, exceeding expectations and ending six quarters of decline. The agriculture sector rebounded, aided by the easing drought effects, with additional gains in manufacturing, trade, and financial services. However, construction and utilities saw declines. Quarterly GDP rose by 1.1%.
Argentina’s economy demonstrated a commendable growth of 2% year-on-year in the fourth quarter of 2024, exceeding the anticipated 1.7% increase and marking a recovery from the 2.1% contraction experienced in the previous quarter. This upturn concludes a troubling streak of six consecutive quarters marked by economic decline.
The recovery was primarily driven by the agriculture sector, which rebounded to 1.6% growth compared to a decline of 2% in the third quarter. This turnaround was facilitated by the easing of the severe impacts of a historic drought that disrupted grain production.
Additional sectors contributed positively, with notable improvements recorded in manufacturing production, which grew by 0.7% after a disappointing contraction of 6.2% in the previous quarter. Other notable gains included wholesale and retail trade at 2.5% (up from -5.8%), transportation at 2% (up from -0.3%), and financial intermediation, which surged by 8.4% after a decline of 2%.
Conversely, the construction sector faced challenges, witnessing a decline of 12.4%, albeit an improvement from the 15.2% drop in Q3. Additionally, utilities experienced a slight downturn of 1%, a stark contrast from the previous quarter’s growth of 0.6%.
On a quarterly basis, Argentina’s GDP saw a growth of 1.1%, following a more robust 3.9% expansion recorded in the preceding quarter.
In summary, Argentina’s economy has rebounded with a significant 2% growth in the last quarter of 2024, marking a noteworthy end to a prolonged period of decline. This recovery is attributed to improvements in the agriculture sector and positive contributions from manufacturing, trade, and financial services. Despite remaining challenges in construction and utilities, the overall economic indicators suggest a stabilizing trend.
Original Source: www.tradingview.com
