Argentina’s Economy Contracts 1.7% in 2024 Despite Fourth Quarter Growth

Argentina’s economy shrank by 1.7% in 2024, with a late-year rebound showing a 1.4% growth in the fourth quarter. Annual growth for that quarter outpaced predictions at 2.1%. High inflation remains a significant issue, even as austerity measures impact public services and individual finances.

In 2024, Argentina’s economy contracted by 1.7% compared to the previous year, according to the national statistics agency. However, there was a notable recovery during the last quarter, with a 1.4% increase in gross domestic product (GDP) compared to the third quarter, marking consecutive quarterly growth. This rebound in the October to December period also reflected a year-on-year increase of 2.1%, surpassing analysts’ predictions of 1.7%.

The early months of 2024 saw Argentina’s economy struggle, particularly due to a slowdown in industrial activity amidst stringent austerity measures introduced by President Javier Milei. Nonetheless, the economy began to recover in the latter part of the year, indicating potential stabilization.

Despite these positive signs, Argentina continues to face significant economic challenges, including high inflation that has decreased to 66.9%. The government’s attempts to alleviate economic difficulties involve removing capital controls; however, many citizens are still grappling with soaring prices and reductions in public services.

In summary, while Argentina’s economy experienced a contraction of 1.7% in 2024, it showed signs of recovery towards the end of the year. Aiming for stabilization, the government is addressing high inflation and industry challenges, though citizens still face economic hardships. Overall, the recent growth in GDP illustrates a potential turnaround for Argentina’s economy, despite ongoing fiscal difficulties.

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