In 2024, Argentina’s economy shrank by 1.7%, but showed signs of recovery in the fourth quarter with a 1.4% growth. Year-on-year GDP increased by 2.1%, defying analysts’ projections, although high inflation and austerity measures continue to challenge residents.

According to Argentina’s statistics agency, the nation’s economy contracted by 1.7% in 2024 compared to the prior year. However, there was a notable expansion in the final quarter, with a 1.4% increase in gross domestic product (GDP) on a quarter-to-quarter seasonally-adjusted basis. This marks the second consecutive quarter of growth, despite earlier setbacks.

In the fourth quarter of 2024, Argentina’s GDP recorded a year-on-year increase of 2.1%, surpassing the analysts’ expectation of a 1.7% growth. The economy faced significant challenges at the start of 2024 as the industrial sector struggled under strict austerity measures implemented by President Javier Milei. Nonetheless, there was a noticeable recovery during the latter months of the year.

Although inflation remains extremely high at 66.9%, the government’s measures to mitigate economic difficulties, including the removal of capital controls, appear to have had some effect. Nevertheless, citizens continue to contend with rising costs and cuts to public services, highlighting the complex economic landscape in Argentina.

In summary, while Argentina’s economy experienced a 1.7% contraction in 2024, late-year trends indicated a recovery with quarterly expansions in GDP. The country is grappling with extreme inflation and austerity measures but has shown resilience with a year-on-year GDP increase in the fourth quarter. These circumstances illustrate the ongoing challenges and potential for recovery in Argentina’s economic environment.

Original Source: money.usnews.com