Argentina’s economy grew 1.4% in Q4 2024, marking two consecutive quarters of growth, amidst expectations for an IMF agreement that may boost economic stability and growth rates. Economists forecast a 4.8% increase in 2025.
At the end of 2024, Argentina, under President Javier Milei, recorded a second consecutive quarter of economic growth, which augments his prospects in the upcoming midterm elections. The nation’s gross domestic product increased by 1.4 percent in the last quarter, surpassing analyst expectations which had predicted growth of 1.3 percent. Year-over-year, the economy grew by 2.1 percent, according to government data released on Wednesday, with Bloomberg’s surveys indicating a median estimate of 1.7 percent.
From July to September 2024, Argentina’s economy had already shown signs of recovery, registering a quarter-on-quarter growth of 4.3 percent after three quarters of contraction. Indicators such as wages exceeding inflation since April, slow job growth, and declining poverty rates signal a positive trajectory for the nation’s economy since Milei took office.
A new agreement with the International Monetary Fund (IMF) is on the horizon, with an anticipated preliminary approval vote in the Chamber of Deputies later today. This loan, currently subject to negotiation, aims to solidify the central bank’s finances, enabling Argentina to ease capital controls which significantly hinder the country’s sustainable economic growth.
Looking ahead, economists surveyed by Argentina’s Central Bank predict that the economy is set to grow by 4.8 percent in 2025. This optimistic forecast reflects increasing confidence in Argentina’s economic recovery and stability.
In summary, Argentina’s economy is experiencing a notable recovery, as evidenced by consecutive quarterly growth and positive labor market trends. The forthcoming IMF agreement is expected to facilitate further economic stability and growth. With projected growth rates suggesting optimism, President Milei stands poised to strengthen his political position in the midterm elections.
Original Source: www.batimes.com.ar
