Argentina’s economy grew by 0.1% in November 2024 compared to the previous year, as reported by the National Institute of Statistics and Censuses (INDEC).
This marks the first positive growth after five months of decline, potentially signaling a turning point for the country’s economic situation. The Monthly Economic Activity Estimator (EMAE) revealed a 0.9% increase from October to November.
The fishing sector led the growth with a substantial 164.6% year-on-year increase, while financial intermediation grew by 9.9%. However, some sectors continue to struggle, with construction declining by 14.2% and utilities falling by 5.6%.
President Javier Milei‘s administration has implemented strict fiscal measures since taking office in December 2023. These policies aim to combat inflation, which reached 211% at the end of 2023.
Recent data shows some progress, with November’s inflation rate at 2.4%, the lowest in over four years. Critics argue that economic reforms have disproportionately impacted vulnerable groups.
However, private sector employment has shown modest growth, and the International Monetary Fund projects a 5% GDP growth for Argentina in 2025.
Argentina’s vast natural resources, including lithium and gas reserves, could play a crucial role in its economic recovery. However, risks remain, including potential opposition to current policies and the impact of extreme weather events on agricultural output.
As Argentina moves forward, the government faces the challenge of balancing fiscal discipline with social needs. The coming months will be crucial in determining whether November’s growth represents a sustained economic turnaround or a temporary improvement.
