Argentina’s economy contracted by 1.7% in 2024 but expanded 1.4% in the fourth quarter, marking a recovery. Year-on-year GDP grew by 2.1%, exceeding predictions. The economy faced challenges from austerity measures, while inflation slowed to 66.9%.
In 2024, Argentina’s economy contracted by 1.7% compared to the previous year, as reported by the country’s statistics agency. However, a late-year rebound was evident, with the economy experiencing a 1.4% expansion in the fourth quarter on a seasonally adjusted basis, marking the second consecutive quarter of growth.
Year-on-year data indicates that Argentina’s GDP increased by 2.1% in the October to December period, surpassing analysts’ expectations for a 1.7% growth. Despite this positive trend, the economy faced significant challenges earlier in the year due to industrial slowdowns resulting from stringent austerity measures imposed by President Javier Milei.
While inflation has moderated to 66.9%, the government continues to address the economic crisis by reducing capital controls. Nonetheless, citizens are grappling with rising costs and reductions in public services. Overall, the economy shows signs of recovery, yet challenges remain for the populace.
In summary, Argentina’s economy experienced a 1.7% contraction in 2024, despite notable growth in the fourth quarter. The increase in GDP, both quarter-on-quarter and year-on-year, reveals a potential rebound from previous austerity measures. However, ongoing inflation and reductions in public services continue to place a strain on residents, highlighting the complexity of the nation’s economic recovery.
Original Source: money.usnews.com
