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

Argentina’s economy grew by 2% year-on-year in Q4 2024, surpassing expectations and reversing a contraction from the previous quarter. The rebound was driven primarily by the agriculture sector, with positive contributions from manufacturing and trade. However, construction and utilities experienced declines. Quarterly GDP also grew by 1.1%.

In the fourth quarter of 2024, Argentina’s economy demonstrated a notable recovery with a 2% year-on-year growth, exceeding the anticipated 1.7% and rebounding from a 2.1% contraction in the prior quarter. This significant growth effectively concludes six consecutive quarters of economic downturn. The agriculture sector played a pivotal role in this recovery, registering a growth of 1.6%, a stark contrast to the -2% in the third quarter, as the negative impacts of a severe drought began to wane.

Moreover, various sectors contributed positively to the economic growth; manufacturing production increased by 0.7% compared to a sharp decline of -6.2% in the previous quarter. The wholesale and retail trade sectors recorded a 2.5% rise, improving from -5.8%. Transportation also saw a rebound with a 2% increase, while financial intermediation surged by 8.4%, recovering from a previous dip of -2%.

Conversely, some sectors experienced declines, such as construction, which fell by 12.4%, albeit an improvement from -15.2%. Utilities saw a minor decrease of 1%, compared to a slight gain of 0.6% in the preceding quarter. On a quarterly basis, Argentina’s GDP achieved a growth of 1.1%, following a previous quarterly expansion of 3.9%.

Argentina’s economy is witnessing a promising rebound with a 2% growth in the fourth quarter of 2024, effectively ending a prolonged period of economic decline. Key sectors such as agriculture, manufacturing, and trade are leading this recovery, while certain industries like construction and utilities still face challenges. The overall trend suggests a gradual stabilization of the economy moving forward.

Original Source: www.tradingview.com