Argentina's GDP Shrinks 1.7% in 2024, but Shows Late-Year Rebound

Argentina's economy contracted by 1.7% in 2024 compared to the previous year, according to the country's statistics agency. However, the gross domestic product (GDP) expanded by 1.4% in the fourth quarter compared to the previous one, marking the second consecutive quarter-on-quarter expansion. Year-on-year, Argentina's GDP also increased by 2.1% in the October to December period, exceeding analysts' expectations of a 1.7% expansion. The economy faced challenges in early 2024 due to industrial slowdown amid austerity measures implemented by President Javier Milei, but experienced a rebound in the latter part of the year. Inflation in Argentina has slowed to 66.9% as the government aims to address economic issues by removing capital controls. Despite this, residents continue to grapple with rising costs and cuts to public services.