In 2024, Argentina’s economy shrank 1.7% despite a fourth-quarter rebound, expanding 1.4% quarterly and 2.1% annually in that period. Early-year challenges arose from austerity measures, but inflation has slowed to 66.9%, albeit residents face rising costs and reduced public services.
Argentina’s economy contracted by 1.7% in 2024 in comparison to the previous year, as reported by the national statistics agency. Despite this decline, the economy demonstrated growth in the last three months of the year, achieving a 1.4% increase in gross domestic product (GDP) in the fourth quarter, relative to the previous quarter. This uptick marks the economy’s second consecutive quarterly expansion.
In year-on-year terms, the GDP saw an impressive rise of 2.1% during the October to December period, surpassing analysts’ projected growth of 1.7%. Initially, early 2024 was challenging for Argentina’s economy due to a slowdown in industrial activity brought on by stringent austerity measures implemented by the libertarian President Javier Milei. However, a rebound occurred during the latter part of the year.
Amid these economic fluctuations, Argentina’s inflation rate has declined to 66.9%. The government is addressing ongoing economic difficulties by eliminating capital controls. Nevertheless, residents continue to face challenges related to rising costs and reductions in public services, contributing to a difficult economic landscape overall.
In conclusion, while Argentina’s economy experienced an overall contraction of 1.7% in 2024, the latter part of the year showed signs of recovery with two consecutive quarterly expansions. The GDP growth of 2.1% in the final quarter outperformed expectations, reflecting a rebound amid challenging austerity measures. Nonetheless, pervasive inflation and struggles with public services remain significant concerns for Argentine citizens.
Original Source: money.usnews.com
