Argentina’s economy shrank by 1.7% in 2024 but rebounded with 1.4% GDP growth in Q4. Despite early struggles from austerity measures, a 2.1% year-on-year increase in Q4 exceeded forecasts, and inflation decreased to 66.9% under ongoing challenges.
Argentina’s economy contracted by 1.7% in 2024 when compared to the previous year, according to a report from the national statistics agency. However, the economy showed signs of recovery, with a 1.4% growth in gross domestic product (GDP) during the fourth quarter compared to the third, marking back-to-back quarterly expansions. Year-on-year GDP increased by 2.1% in the last quarter, exceeding analyst predictions of 1.7%.
In early 2024, Argentina experienced an economic downturn, attributed to reduced industrial activity due to strict austerity measures implemented by libertarian President Javier Milei. Despite this, the economy rebounded in subsequent months, showing improvements towards the end of the year. The government’s efforts to reduce capital controls have begun to show impact, resulting in a decrease in inflation to 66.9%, although residents continue to face rising expenses and reductions in public services.
In summary, while Argentina’s economy contracted by 1.7% for the full year of 2024, a significant recovery was observed in the final quarter, highlighted by a 1.4% GDP growth and a 2.1% year-on-year increase. The rebound followed a challenging initial phase prompted by strict austerity measures, and while inflation has slowed, the population still contends with high living costs and public service cuts.
Original Source: money.usnews.com
