Thanks to the work of the Government of Javier Milei, the Argentine economy experienced a remarkable advance in the fourth quarter of 2024. According to the latest data revealed by INDEC, the quarter-on-quarter growth was 1.4%, while the year-on-year reached 2.1%.
Additionally, if this expansion were to continue for four consecutive quarters, the annualized rate would soar by 5.7%, surpassing the expectations of experts and the market, who estimated an annualized growth of between 4.7% and 5.5%.
This result has been exceptionally positive in almost all its aspects, consolidating the recovery initiated in the third quarter, once the "Massazo" ended, the economic crisis inherited from Kirchnerism.
Javier Milei, presidente de Argentina.
In broader terms, the Gross Domestic Product (GDP) of 2024 only fell by 1.7%, an improvement compared to previous forecasts that anticipated a 3% recession. Additionally, the consumption and investment sectors return to levels prior to President Javier Milei's assumption.
These data reflect a strong recovery, which arrived sooner than expected, and amid a historic plan of adjustment and structural reforms, something necessary for the economy to find its new balance and growth base.
Intellectuals like Juan Ramón Rallo, Doctor in Economics and university professor, highlighted Argentina's GDP data for the fourth quarter of 2024. According to Rallo, "The economy grew by 1.4% quarter-on-quarter (equivalent to 5.7% annualized)".
He also noted that the GDP of the fourth quarter of 2024 was 2.1% higher than that of the same quarter of 2023, which means that "the Argentine economy ALREADY generates more wealth today than before Milei".
Javier Milei, presidente de Argentina.
This recovery is even more remarkable considering that the Argentine economy came from a deep decline in the first quarters of the year, highlighting the magnitude of the recovery.
Meanwhile, Daniel Fernández, professor of Economics at Universidad Francisco Marroquín, also agrees with Rallo and adds that "Argentina's GDP grows again in the fourth quarter of 2024 as doubts about the good macroeconomic performance of Milei's Government dissipate".
The "chainsaw plan" promoted by Milei's Government involved historic cuts in public spending (equivalent to 15 points of GDP), along with deregulation and reductions in public employment.
Regarding the components of growth in the fourth quarter of 2024, imports of goods and services increased by 12.9% compared to the previous quarter, thanks to a strong recovery in domestic demand driven by the increase in real wages. Exports grew by 7.7%, gross fixed capital formation increased by 11.3%, and private consumption advanced by 3.2%.
