Argentina’s GDP dropped by 1.8% in 2024, less than the anticipated 3.6%. President Milei’s austerity measures included significant government cuts and a focus on fiscal discipline. The economy showed a 5.5% annual growth in December 2024, with inflation falling to its lowest level in years. The IMF forecasts a 5% growth for the next two years.
Argentina’s GDP contracted by 1.8% in 2024, a decline that was less severe than the World Bank’s projection of 3.6%. This data, provided by the national statistics agency Indec, marks President Javier Milei’s first year in office as he implemented significant austerity measures. Despite a tough economic landscape, the economy showed a promising 5.5% growth year-on-year in December.
Milei, who has adopted libertarian economic policies, celebrated the GDP figures on the social media platform X, attributing the results to what he claims is the ‘largest fiscal adjustment in history.’ His administration has enacted severe cuts including halting public works and laying off thousands of public workers, aiming to curb government expenditure and boost economic recovery.
Inflation, a chronic issue facing Argentina, decreased to 2.2% in January, the lowest rate in 4.5 years, signaling potential stabilization. Milei’s controversial approach has attracted attention, positioning him as a model for others, including Elon Musk, who received a symbolic chainsaw related to Milei’s campaign message about fiscal discipline.
The International Monetary Fund (IMF) has projected that the Argentine economy will rebound, forecasting a 5% growth for both 2025 and 2026, indicating potential optimism for future economic conditions.
In summary, while Argentina’s economy experienced a contraction of 1.8% in 2024, the decline was not as harsh as expected. President Milei’s austerity measures seem to be fostering initial signs of recovery, reflected in improved GDP growth in December and reduced inflation rates. However, the long-term economic trajectory remains contingent on sustained fiscal discipline and successful implementation of reforms.
Original Source: www.hurriyetdailynews.com
