Argentina’s economy grew by 2% in Q4 2024, surpassing expectations. This marks a recovery from six quarters of decline, largely driven by improvements in agriculture and manufacturing. Nonetheless, declines in construction and utilities were noted, and quarterly GDP grew by 1.1%.
In the fourth quarter of 2024, Argentina’s economy recorded a 2% year-on-year growth, exceeding the anticipated 1.7%. This growth signifies a recovery from a 2.1% contraction noticed in the prior quarter and ends a streak of six quarters of economic decline.
The agriculture sector played a significant role in this rebound, improving by 1.6% compared to a decline of 2% in Q3. The positive impact was attributed to the diminishing effects of a historic drought that previously affected grain production.
Other contributing factors to the growth included an increase in manufacturing production at 0.7%, and gains in wholesale and retail trade (2.5%), transportation (2%), and financial intermediation (8.4%).
Conversely, the construction sector witnessed a decline of 12.4%, although this was an improvement from the 15.2% decrease in Q3. Utilities also declined by 1%, down from a slight gain of 0.6% in the previous quarter.
On a quarterly basis, the GDP grew by 1.1%, following a robust 3.9% increase in the preceding quarter, signaling a cautious optimism in Argentina’s economic outlook.
Argentina’s economy has rebounded in Q4 2024 with a notable 2% year-on-year growth, indicating recovery after six quarters of decline. The agriculture sector’s improvement and growth in manufacturing and trade have been pivotal. Despite some declines in construction and utilities, the overall quarterly GDP growth of 1.1% suggests a positive direction for the economy.
Original Source: www.tradingview.com
