Argentina’s economy grew by 0.5% in December, surpassing expectations and demonstrating resilience under President Javier Milei. The GDP proxy rose 5.5% year-over-year, aided by strong performance in manufacturing, retail, and finance sectors, while poverty rates fell significantly. The IMF projects continued growth of 5% for 2025.
Argentina’s economy demonstrated significant resilience in December, growing by 0.5% from the previous month, surpassing economists’ median estimate of 0.2%. This continued positive trend follows earlier unexpected growth and is reflective of a broader economic recovery under President Javier Milei’s leadership. Year-over-year, the GDP proxy increased by 5.5%, outpacing the anticipated 3.5%, according to recent government statistics.
The second-largest economy in South America has shown consistent improvement following a challenging slump attributed partly to Milei’s austerity measures in early 2024. Salaries in Argentina have also managed to keep ahead of monthly inflation rates since April, contributing to a declining poverty rate, which has fallen to below 37% at the end of 2024, a significant decrease from over 54% at the year’s start.
Key sectors contributing to December’s annual growth included manufacturing, retail, and finance, with construction and fishing experiencing declines. The growth in the third quarter was attributed to increased capital investment, higher consumer spending, and export activity. The International Monetary Fund forecasts a further 5% growth for Argentina in 2025, indicating a continued recovery trajectory.
In summary, Argentina’s economy not only exceeded expectations in December but also showed signs of robust growth in several sectors despite previous economic challenges. The decline in poverty rates alongside rising wages and impressive GDP growth indicators suggests a positive outlook for the country’s economic future under current policies. The IMF’s growth projections for 2025 further underscore this optimism.
Original Source: www.bnnbloomberg.ca
