Argentina’s economy shows continued growth under President Javier Milei, with a 1.4% GDP increase in Q4 2024, marking a second consecutive quarter of expansion. A new IMF agreement is anticipated to assist in lifting capital controls, while economists project a 4.8% growth for 2025.
Argentina’s economy has experienced continued expansion under President Javier Milei, marking its second consecutive quarter of growth by the conclusion of 2024. The gross domestic product (GDP) increased by 1.4 percent during the last quarter of the year compared to the previous one, surpassing the median analyst estimate of 1.3 percent. Year-on-year, the economy demonstrated a growth rate of 2.1 percent in the final quarter, outperforming Bloomberg’s surveyed economists’ forecast of 1.7 percent.
Between July and September 2024, Argentina’s economy recorded an impressive 4.3 percent quarter-on-quarter growth, recovering from three quarters of contraction. Positive indicators of economic recovery include wages rising above inflation since April, a gradual increase in job growth, and private estimates suggesting a decrease in poverty levels since President Milei took office.
Discussions regarding a new agreement with the International Monetary Fund (IMF) are nearing conclusion, with a preliminary vote in the Chamber of Deputies anticipated later today. This loan agreement, still under negotiation, aims to bolster the central bank’s finances to enable the lifting of capital controls, which currently obstruct ongoing economic growth.
Looking ahead, economists consulted by Argentina’s Central Bank project a robust economy growth of 4.8 percent for the year 2025, signaling optimism for the country’s economic future.
In summary, Argentina’s economy is exhibiting signs of recovery with consecutive quarters of growth under President Milei’s leadership. Positive changes in wages, employment, and poverty levels highlight this expansion. As a new agreement with the IMF approaches, there is optimism among economists about future growth prospects, with expectations for a 4.8 percent increase in 2025.
Original Source: www.batimes.com.ar
