Argentina’s Economy Faces Decline Yet Shows Signs of Recovery in 2024

Argentina’s economy declined by 1.7% in 2024 but saw a quarterly GDP growth of 1.4% in Q4. Year-on-year, GDP increased by 2.1%, surpassing forecasts. The economy struggled early due to President Milei’s austerity measures, although inflation has decreased to 66.9%.

Argentina experienced a contraction of 1.7% in its economy for 2024 in comparison to the preceding year. However, the statistics agency reported a resurgence, with the country’s gross domestic product (GDP) expanding by 1.4% in seasonally-adjusted terms during the fourth quarter, marking the second consecutive quarterly growth.

In a year-on-year analysis, Argentina’s GDP showed a significant increase of 2.1% for the period between October and December, surpassing analysts’ projections of a 1.7% rise. Despite these positive developments, the economy faced challenges earlier in the year, as industrial activity declined amid stringent austerity measures implemented by libertarian President Javier Milei.

The inflation rate, which had soared, declined to 66.9%. The government is attempting to mitigate economic challenges by removing capital controls. Nonetheless, citizens continue to contend with soaring living costs and reductions in public services.

In conclusion, despite a yearly contraction of 1.7% in Argentina’s economy for 2024, recent quarters have shown signs of growth, with a 2.1% year-on-year GDP increase in the last quarter. The government’s austerity measures have impacted industrial performance; however, a decline in inflation has been noted. Ongoing challenges with high costs of living and public service cutbacks continue to affect residents significantly.

Original Source: money.usnews.com