Argentina’s Economy Rebounds with 2% Growth in Q4 2024

Argentina’s economy grew by 2% in Q4 2024, exceeding expectations and ending six quarters of decline. The recovery was led by agriculture, manufacturing, and retail, despite losses in construction and utilities. Quarterly GDP also rose by 1.1%.

Argentina’s economy has experienced a notable recovery, growing by 2% year-on-year in the December quarter of 2024. This performance exceeded predictions of a 1.7% increase and marked an end to six consecutive quarters of decline, following a 2.1% contraction in the prior quarter. The growth has been fueled primarily by a resurgence in the agriculture sector, which improved from a contraction to a modest expansion, as the impacts of a historic drought receded.

Key sectors contributing to this positive trend include manufacturing, which rebounded to 0.7% growth compared to the previous quarter’s decline of 6.2%. Wholesale and retail trade also showed significant improvement with a 2.5% gain, while transportation increased by 2% and financial intermediation surged by 8.4%, indicating strong economic activity across various industries.

However, certain sectors did register declines, particularly construction, which fell by 12.4%, albeit a slight improvement from a 15.2% contraction. Utilities also reported a decrease, with a decline of 1% following a minor growth of 0.6% in the previous quarter. On a quarterly basis, the country’s GDP increased by 1.1% after a robust growth of 3.9% in the preceding period.

In conclusion, Argentina’s economy shows signs of recovery with a 2% year-on-year growth in the December quarter of 2024, attributed largely to improvements in the agriculture sector and various industries such as manufacturing and retail. While certain sectors faced declines, the overall GDP increased quarterly, reflecting a potential stabilization following a prolonged recession.

Original Source: www.tradingview.com