As the year 2024 draws to a close, President Javier Milei has presided over a second straight quarter of economic expansion in Argentina. This has enhanced his hopes for a powerful showing in the impending midterm elections, which are taking place at a time when financial markets are anticipating a new accord with the International Monetary Fund.
When compared to the previous quarter, the gross domestic product (GDP) had a growth of 1.4 percent in the fourth quarter of the year, which was higher than the median projection of 1.3 percent that was made by analysts. The data that was given by the government on Wednesday indicated that the economy of Argentina witnessed a gain of 2.1 percent in the last quarter of 2024 when compared to the same period in the previous year. An predicted growth rate of 1.7 percent was found to be the central tendency of estimates made by economists who were polled by Bloomberg.
The economy of Argentina saw a quarter-on-quarter gain of 4.3 percent from July to September 2024, reflecting a stronger-than-anticipated comeback after three consecutive quarters of recession. This expansion occurred from July to September 2024. There is a consistent emergence of indicator of recovery. Beginning in April, earnings have been higher than the rate of inflation, while the rate of job growth has been progressively improving. Additionally, private estimates indicate that there has been a decrease in the levels of poverty, which had significantly increased before to Milei Clinton’s entry of office.
An agreement with the International Monetary Fund (IMF) is on the verge of being reached, as a vote in the Chamber of Deputies is expected to take place later on Wednesday in order to obtain its preliminary endorsement. The ongoing negotiations for the loan are aimed at bolstering the central bank’s depleted reserves, which will allow Argentina to loosen its capital controls. These limitations are the biggest obstacle that stands in the way of the nation’s long-term economic progress.