Argentina’s Economy Sees 1.7% Shrinkage in 2024 Despite Last Quarter Growth

Argentina’s economy shrank by 1.7% in 2024, yet demonstrated resilience with a 1.4% expansion in the fourth quarter. Year-on-year GDP growth of 2.1% was noted, exceeding forecasts amidst ongoing inflation issues and austerity measures from President Javier Milei.

In 2024, Argentina’s economy contracted by 1.7% compared to the previous year, as reported by the country’s statistics agency. Despite this annual decline, the economy experienced a quarterly growth of 1.4% in the fourth quarter, marking the second consecutive quarter of expansion. Additionally, year-on-year GDP growth for the October to December period reached 2.1%, surpassing analyst expectations of a 1.7% increase.

The beginning of 2024 was marked by economic challenges, as the industrial sector faced setbacks due to stringent austerity measures implemented by libertarian President Javier Milei. However, a recovery was observed in the latter months of the year, indicating signs of economic resilience. While inflation has decreased to 66.9%, many citizens continue to confront rising living costs and diminishing public services as the government attempts to alleviate economic difficulties by eliminating capital controls.

In conclusion, Argentina’s economy faced a 1.7% decline in 2024, though it saw a rebound in the latter half of the year, achieving a 1.4% growth in the fourth quarter. With a yearly GDP increase of 2.1% from October to December, the country has shown signs of recovery despite ongoing challenges such as high inflation and austerity measures. Efforts to address economic issues continue as the government navigates through the financial landscape.

Original Source: money.usnews.com