Argentina’s Economy Shows Continued Growth Amid New IMF Accord

Argentina’s economy experienced a 1.4% GDP growth in Q4 2024, marking a second consecutive quarter of expansion under President Javier Milei. This growth, alongside a new IMF accord on the horizon, enhances Milei’s election prospects. Economic indicators show a recovery, with forecasts predicting a 4.8% growth in 2025.

President Javier Milei recently reported a second consecutive quarter of economic growth in Argentina, enhancing his prospects for a successful performance in the upcoming midterm elections. At the end of 2024, Argentina’s gross domestic product (GDP) increased by 1.4 percent compared to the previous quarter, surpassing the 1.3 percent average predicted by analysts. Year-on-year data reveals a growth of 2.1 percent for the last quarter, exceeding the 1.7 percent forecast from Bloomberg economists.

Notably, during the third quarter of 2024, the economy grew by 4.3 percent, marking a substantial recovery after a series of three consecutive quarters of contraction. Positive signs of economic recovery include wages exceeding inflation rates since April, a gradual increase in job creation, and reductions in poverty levels post the spike that occurred with Milei’s inauguration.

A new accord with the International Monetary Fund (IMF) is anticipated soon, with preliminary votes in the Chamber of Deputies expected to be held later today. The ongoing negotiations aim to finalize a loan that would bolster the central bank’s reserves, facilitating the relaxation of capital controls, which have been a significant barrier to Argentina’s economic growth. As a forward-looking projection, economists from Argentina’s Central Bank forecast a 4.8 percent growth rate for the country in 2025.

The continuation of economic expansion in Argentina under President Javier Milei highlights a positive trajectory as the country nears a new IMF agreement. The notable growth indicators, including rising wages and declining poverty, boost Milei’s electoral prospects. Furthermore, the anticipated agreement with the IMF is expected to further stabilize the economy and relax capital controls, paving the way for sustained growth in the upcoming years.

Original Source: www.batimes.com.ar