Argentina’s economy shrank 1.7% in 2024; however, it saw a 1.4% quarterly growth in Q4, with a year-on-year GDP increase of 2.1%. The country faces ongoing economic challenges despite slowing inflation at 66.9%.
In 2024, Argentina’s economy experienced a contraction of 1.7% relative to the previous year, as reported by the national statistics agency. However, there was a notable expansion of 1.4% in the fourth quarter compared to the previous quarter, marking the second consecutive quarterly growth.
In a year-on-year comparison, the GDP saw a growth of 2.1% during the last three months of 2024, which surpassed analysts’ predictions of a 1.7% increase. This growth followed a challenging start to the year, characterized by a slowdown in industrial activity due to strict austerity measures implemented by President Javier Milei’s administration.
Despite this late-year recovery, Argentina continues to grapple with economic challenges. The inflation rate has eased to 66.9%, but residents face ongoing difficulties due to rising costs and reductions in public services as the government attempts to address these economic issues by eliminating capital controls.
In summary, while Argentina’s economy contracted overall in 2024, it showed signs of recovery towards the end of the year with consecutive quarterly growth. Inflation is gradually declining; however, the populace still faces significant economic challenges, including increased living costs and reduced public services. The government’s strategies under President Milei’s leadership will be critical in shaping the country’s economic future.
Original Source: money.usnews.com
