Argentina’s economic activity increased by 5.5% year-on-year in December 2024, the highest growth since August 2022. Key sectors contributing to this growth included manufacturing, utilities, financial services, agriculture, and transportation. Construction saw a slower contraction, and mining’s growth slightly moderated.
In December 2024, Argentina’s economic activity estimator experienced a significant year-on-year increase of 5.5%, marking its most substantial growth since August 2022. This surge followed a modest 0.4% rise in November and eclipsed the anticipated 3.5% growth rate. Key sectors driving this expansion included substantial rebounds in manufacturing, utilities, financial services, agriculture, and transportation, alongside a slowdown in construction contractions.
Particularly, the manufacturing sector saw impressive growth at 6.7%, markedly up from a decline of 2.1% in the previous month. Utilities also showed improvement at 2.9%, recovering from a much steeper decline of 5.5%. Financial services soared by 18%, up from 10%, while agriculture recorded similar growth at 6.7%, enhancing from only 0.9% in November. Transportation growth improved modestly to 1.7% versus 0.1% from the prior month.
Despite overall growth, the construction industry continued to contract but at a slower pace of -7.2%, improved from -14.4% earlier. Additionally, mining and quarrying sectors experienced a slight deceleration in growth at 7.3%, compared to a prior 7.4% in November. Adjusted data reflected a 0.5% increase, and the trend-cycle indicator saw an uptick of 0.4%, indicating overall positive activity.
This report demonstrates a significant rebound in Argentine economic activity, markedly surpassing projections and driven by growth across multiple sectors. These trends indicate a stabilization following previous downturns, particularly in manufacturing and agriculture, while challenges remain evident in construction. Overall, the data suggests an optimistic outlook for Argentina’s economy moving forward.
Original Source: www.tradingview.com
