Argentina’s economy rebounded more than anticipated in the fourth quarter of 2024, marking the second consecutive quarter of expansion under President Javier Milei’s administration.

According to official data, the country’s Gross Domestic Product (GDP) grew by 1.4% compared to the previous quarter, exceeding analysts’ median estimate of 1.3%. On a year-over-year basis, the economy expanded by 2.1%, surpassing economists’ forecasts of 1.7% growth.

This strong performance followed a 4.3% quarter-on-quarter growth in Q3 2024, breaking a trend of three consecutive quarters of economic contraction.

Signs of a Sustained Recovery

Several key indicators suggest a broader economic recovery is underway:

• Wages have outpaced inflation since April 2024, boosting purchasing power.
• Employment growth is picking up, signaling renewed business confidence.
• Private estimates indicate a decline in poverty rates, which had surged when Milei took office.

IMF Deal and Economic Outlook

Argentina is on track to secure a new agreement with the International Monetary Fund (IMF), which is expected to further strengthen economic prospects. The Chamber of Deputies is set to vote on a preliminary approval of the agreement, which aims to reinforce central bank reserves and gradually remove capital controls that have hindered long-term growth.

Looking ahead, economists surveyed by Argentina’s Central Bank project 4.8% GDP growth in 2025, reflecting growing optimism about the country’s economic trajectory.