Argentina’s economic activity increased by 5.5% in December year-on-year, the fastest growth since mid-2022, surpassing expectations of 3.5%. The rise was primarily driven by the financial intermediation and commerce sectors. Additionally, December saw a 0.5% increase compared to November, indicating a potential economic recovery, despite a projected 1.8% decline in 2024.
Argentina’s economic activity saw a notable rise of 5.5% in December, compared to the same month in the previous year, marking the fastest growth since mid-2022. This increase exceeded the 3.5% growth anticipated by analysts surveyed by Reuters. The growth followed a reassessment of the prior month, where year-on-year expansion was revised down to 0.4%. The surge in December was mainly fueled by nine productive sectors, particularly in financial intermediation and commerce, according to the data from the national statistics agency, INDEC.
The overall economic activity also demonstrated a monthly increase of 0.5% from November, continuing a positive trend with three consecutive monthly increases. This indicates a potential recovery phase for Argentina’s economy, which has faced significant challenges due to austerity measures implemented by President Javier Milei. Notably, data from INDEC forecasted a 1.8% annual decline in economic activity for 2024, indicating ongoing economic struggles despite recent gains.
In summary, Argentina’s economic activity is experiencing a robust recovery, with a significant 5.5% growth in December 2023 and continuing positive monthly performances. However, the anticipated annual decline for 2024 signifies persistent challenges ahead. The resilience observed in key sectors provides a glimmer of hope for an economy undergoing austerity and transformation.
Original Source: www.marketscreener.com
