Argentina’s economy grew by 2% year-on-year in Q4 2024, exceeding expectations and ending six consecutive quarters of decline. The agriculture sector’s recovery played a significant role, alongside growth in manufacturing, trade, and financial services. However, challenges remain in construction and utilities, while quarterly GDP rose by 1.1%.
In the final quarter of 2024, Argentina’s economy registered a notable growth of 2% year-on-year, exceeding the anticipated 1.7% increase and recovering from a 2.1% contraction experienced previously. This signifies the end of a six-quarter streak of economic decline, with recovery largely attributed to a resurgence in the agriculture sector, which saw a growth of 1.6% compared to a contraction of 2% in the third quarter due to the mitigation of the impact from a historic drought that affected grain production.
Additionally, various sectors reported improvements; manufacturing production advanced by 0.7% as opposed to a significant downturn of 6.2% in Q3. The wholesale and retail trade sector experienced a growth of 2.5% as opposed to a contraction of 5.8%, while transportation and financial intermediation observed gains of 2% and 8.4% respectively, recovering from previous declines.
Conversely, some sectors faced challenges, with construction declining by 12.4% compared to a smaller contraction of 15.2%, and utilities experiencing a decrease of 1% from a slight increase of 0.6%. On a quarterly basis, Argentina’s Gross Domestic Product (GDP) rose by 1.1%, a decrease from the previous quarter’s expansion of 3.9%.
In summary, Argentina’s economy demonstrated a significant turnaround in Q4 2024, achieving a 2% growth and breaking a trend of decline. This growth is largely driven by improvements in agriculture, manufacturing, trade, transportation, and financial services. Although certain sectors like construction and utilities continued to face challenges, overall, the economic outlook appears more promising following several quarters of downturn.
Original Source: www.tradingview.com
