In the last quarter of the year, the Argentine economy experienced a growth of 1.3%, closing 2024 with an annual contraction of 1.8%, a decrease less pronounced than previously anticipated. According to economist Lautaro Moschet, Argentina has officially exited the recession by surpassing two consecutive quarters of expansion and recovering levels prior to the economic crisis. This rebound was reflected in an increase of 0.5% compared to November, considering seasonally adjusted values.
According to the report, nine of the sectors that are part of the Monthly Economic Activity Estimator (EMAE) showed increases in December. Noteworthy is Financial Intermediation with a remarkable year-on-year growth of 18.0%, and Wholesale, Retail Trade, and Repairs, which increased by 7.4%. The latter sector, along with Public Administration and Defense, had the largest negative impact on the index, subtracting 0.34 percentage points from the total.
Moschet explained that these indicators consolidate a positive trend that began in May 2024. Although six activities showed declines in year-on-year comparisons, such as Fishing with a decrease of 25.0% and Construction which fell by 7.2%, the economist remained optimistic stating that growth of over 5% is expected for 2025.
The sector that contributed the most to overall EMAE growth was manufacturing with an increase of 6.7%, closely followed by trade. However, not all sectors achieved positive results. Moschet emphasized the need to continue with structural reforms to sustain economic recovery, mentioning the importance of a deregulation agenda to promote a more dynamic and efficient economy.
In summary, Argentine economic activity showed a year-on-year growth of 5.5% in December 2024, encouraging figures for the country. Furthermore, eliminating capital controls is considered essential to boost investment, increase productivity, and ensure sustainable economic development for the future.
