Argentina’s economy shrank by 1.7% in 2024, while showing growth with a 1.4% GDP increase in the last quarter. The year-on-year growth reached 2.1%, exceeding expectations despite harsh austerity measures. Inflation decreased to 66.9%, but citizens still struggle with rising costs and diminished public services.
In 2024, Argentina’s economy contracted by 1.7% relative to the previous year, according to the national statistics agency. Nonetheless, the economy exhibited growth, with a 1.4% increase in gross domestic product (GDP) during the fourth quarter compared to the prior quarter, indicating ongoing recovery with two successive quarterly expansions.
During the last quarter of the year, the year-on-year GDP growth was recorded at 2.1%, surpassing analysts’ expectations of a 1.7% rise. Despite initial struggles early in the year stemming from austerity measures implemented by President Javier Milei, the economy began to rebound in the latter months of 2024.
While Argentina has successfully reduced its notorious high inflation rate to 66.9%, residents continue to face significant challenges due to rising costs and reductions in public services. The government’s efforts to address economic issues include the removal of capital controls to stimulate growth and stabilize the market.
In summary, Argentina’s economy experienced a decline of 1.7% in 2024, yet late-year growth showed signs of recovery with a 1.4% increase in GDP in the last quarter. Despite the government’s attempts to manage inflation and economic hardships, citizens continue to face substantial financial challenges.
Original Source: www.tradingview.com
