Economic activity in Argentina showed a year-on-year growth of 5.5% in December, according to INDEC. This key indicator improved by 0.5% compared to November in seasonally adjusted terms. In 2024, economic activity contracted only 1.8%, below analysts' predictions.
In comparison with the same month in 2023, nine sectors of activity that make up the EMAE registered increases in December. Notably, Financial Intermediation (+18.0% YoY) and Wholesale, Retail Trade and Repairs (7.4% YoY). The Manufacturing Industry (6.7% YoY) was the sector with the most positive impact on the year-on-year variation of the EMAE, followed by Wholesale, Retail Trade and Repairs (7.4% YoY).
On the other hand, six sectors of activity experienced declines in the year-on-year comparison, with Fishing (-25.0% YoY) and Construction (-7.2% YoY) standing out. The Construction sector (-7.2% YoY) and Public Administration and Defense, mandatory membership social security plans (-2.5% YoY) had the most negative impact on the year-on-year variation of the EMAE.
According to Lautaro Moschet, an economist at the Libertad y Progreso Foundation, the current numbers confirm the positive trend that began in May 2024. Moschet noted that Argentina closed 2024 with an annual contraction of 1.8%, a more moderate decline than expected. He emphasized that the country has overcome the recession, recovering levels prior to the onset of the decline.
To maintain this trend of sustained growth, Moschet pointed out the importance of restoring macroeconomic order and continuing deregulation to achieve a more agile and efficient economy. He highlighted that the elimination of capital controls will be essential to boost investment, productivity, and economic development in Argentina.
