Argentina's GDP grew 2.1% year-on-year in the fourth quarter of 2024.

The Gross Domestic Product (GDP) experienced a 2.1% growth in the fourth quarter of 2024 compared to the same period of the previous year, according to estimates released by the INDEC.

In seasonally adjusted terms, the economy advanced by 1.4% compared to the previous quarter, consolidating the remarkable recovery after the declines recorded in previous periods due to the economic crisis inherited from Kirchnerism.

Among the main drivers of demand, exports led with a 27.1% year-on-year increase, followed by investment in gross fixed capital formation, which grew by 1.9%.

Private consumption also showed an improvement, with a 2.8% increase, while public consumption registered a slight 0.5% advance in the same period.

At the sectoral level, the best-performing sectors were Hotels and restaurants, with an 18.1% year-on-year increase, and Financial intermediation, which grew by 8.4%. On the other hand, the construction sector recorded a 12.4% decline.

These data show a recovery of economic activity toward the end of 2024, something that had already been anticipated by the Government of Javier Milei.

Wholesale inflation

Yesterday, the Wholesale Price Index (IPIM) recorded a 1.6% variation in February, marking the fifth consecutive month with increases below 2%, according to the latest report from the National Institute of Statistics and Censuses (INDEC).

The year-on-year variation of wholesale prices reached 32.7%, while the accumulated increase in the first two months of the year was 3.2%. In all cases, the values recorded for wholesale prices were below retail inflation.

The report also details that in February, domestic products increased by 1.7%, while imported products registered a 0.6% increase. Among domestic products, the largest increase was observed in primary products (2.3%), followed by manufactured goods (1.6%) and electricity (0.3%).