Argentina’s economy experienced a 1.4% growth in Q4 2024, its second consecutive quarter of expansion under President Javier Milei. This growth, along with a potential IMF agreement, enhances Milei’s electoral prospects and suggests positive signs of economic recovery. Economists predict a growth rate of 4.8% for 2025.
President Javier Milei led Argentina to experience a second consecutive quarter of growth at the end of 2024, which improves his prospects for the midterm elections later this year. The gross domestic product (GDP) increased by 1.4 percent in the last quarter of 2024, exceeding the 1.3 percent median estimate by analysts. Year-over-year, Argentina’s economy registered a growth of 2.1 percent, surpassing the Bloomberg consensus estimate of 1.7 percent.
During the preceding quarter, from July to September 2024, Argentina’s economy rebounded with a growth rate of 4.3 percent, following three quarters of economic contraction. Positive indicators of recovery are emerging, as wages have outpaced inflation since April, employment rates are gradually rising, and private estimates suggest a decline in poverty levels after a spike that occurred when Milei assumed office.
A new agreement with the International Monetary Fund (IMF) is anticipated, with a pivotal vote expected in the Chamber of Deputies later today for preliminary approval. This loan, currently under formal negotiation, aims to strengthen the central bank’s financial reserves, enabling Argentina to relax capital controls that hinder the nation’s economic growth.
Economists from Argentina’s Central Bank predict a robust economic growth of 4.8 percent for 2025, reflecting optimism regarding Argentina’s economic trajectory in the upcoming years.
In summary, Argentina has recorded positive economic growth under President Javier Milei, with significant improvements noted in GDP, wages, and employment. The impending agreement with the IMF presents an opportunity to further stabilize the economy. As predictions for 2025 estimate a growth of 4.8 percent, the outlook remains cautiously optimistic for Argentina’s financial landscape moving forward.
Original Source: www.batimes.com.ar
