Argentina’s economy grew by 2% in Q4 2024, exceeding estimates of 1.7% and recovering from a prior 2.1% decline. This growth ended six quarters of downturn, led by improvements in agriculture, manufacturing, and other sectors. Quarterly GDP growth was recorded at 1.1%, following a 3.9% increase earlier.
In the fourth quarter of 2024, Argentina’s economy demonstrated notable resilience, recording a 2% year-on-year growth. This growth surpassed analysts’ projections of a 1.7% increase and marked a significant recovery from the previous quarter’s 2.1% contraction. This development signals the conclusion of a prolonged period of six consecutive quarters of economic decline, largely fueled by improvements in the agriculture sector, which rebounded to a growth of 1.6% amid easing conditions following a historic drought that had severely affected grain yields.
In addition to agriculture, other sectors reported positive gains. The manufacturing sector improved by 0.7% following a sharp decrease of 6.2% in the preceding quarter. The wholesale and retail trade sector expanded by 2.5%, recovering from a decline of 5.8%. Significant growth was also observed in transportation, which increased by 2%, and financial intermediation, which surged by 8.4% compared to their previous performances.
Nevertheless, certain sectors faced ongoing challenges. The construction industry experienced a contraction of 12.4%, although this represented an improvement from the 15.2% decline in the prior quarter. Similarly, the utilities sector recorded a slight decline of 1%, in contrast to a minor increase of 0.6% previously.
On a quarterly basis, Argentina’s Gross Domestic Product (GDP) grew by 1.1%, following a notable 3.9% expansion in the previous period, indicating a gradual recovery trend in the nation’s economic landscape.
Argentina’s economy has shown signs of recovery with a 2% year-on-year growth in the December quarter of 2024, coming after a series of economic declines. The agriculture sector’s revival, alongside improvements in manufacturing, trade, transportation, and financial services, has contributed significantly. Even with challenges in construction and utilities, the overall quarterly growth trend reflects a positive trajectory for the economy moving forward.
Original Source: www.tradingview.com
