Argentina’s economy grew 1.4% in Q4 2024, marking a second consecutive quarter of expansion. This growth enhances President Javier Milei’s midterm election prospects, with predictions of 4.8% growth for 2025. A new IMF agreement is pending, expected to ease capital controls and support economic stability.
Argentina’s economy expanded for the second consecutive quarter under President Javier Milei at the end of 2024, increasing his prospects for success in the upcoming midterm elections. The gross domestic product (GDP) grew by 1.4% from the previous quarter, exceeding the median analyst estimate of 1.3%. Year-on-year, the economy saw a growth of 2.1% in Q4 2024, surpassing Bloomberg’s forecast of 1.7%.
A notable recovery was marked with a 4.3% quarter-on-quarter economic growth between July and September 2024, following three quarters of contraction. Positive signs include rising wages that have outpaced inflation since April, gradual job growth, and indications that poverty levels, which spiked when Milei assumed office, are starting to decline.
A new agreement with the International Monetary Fund (IMF) is anticipated, with the Chamber of Deputies scheduled to vote for preliminary approval of the loan deal later on Wednesday. This agreement, which is still under negotiation, aims to replenish the central bank’s depleted reserves, enabling Argentina to relax its capital controls—an essential step toward sustainable economic growth.
Economists from Argentina’s Central Bank project a robust 4.8% growth in 2025, suggesting a positive outlook for the country’s economy in the coming year.
In summary, Argentina is experiencing economic growth, with GDP increasing for two consecutive quarters under President Javier Milei. Positive trends such as rising wages, job growth, and a potential IMF agreement signal a strengthening economy. Forecasts for 2025 indicate further growth, bolstering the confidence in Argentina’s recovery.
Original Source: www.batimes.com.ar
