Argentina’s economy beat expectations again in December

Argentina’s economy expanded more than expected in December, solidifying the country’s bounceback in the last quarter of the year under President Javier Milei’s watch.

Economic activity rose 0.5 percent from November, more than the 0.2 percent median estimate of economists surveyed by Bloomberg. Monthly growth beat expectations the previous month, too. From a year ago, the gross domestic product proxy grew 5.5 percent, compared with the median estimate of 3.5 percent, according to government data published Tuesday.

South America’s second-largest economy has been showing consistent signs of gaining momentum after a deep slump exacerbated by Milei’s austerity policies in the first half of 2024.

Wages in Argentina beat monthly inflation again in December, continuing a dynamic that began in April. With wages picking up, private estimates monitored closely by the government indicate poverty declined below 37 percent by the end of 2024 after surpassing 54 percent at the start of the year.

Manufacturing, retail and the financial sector helped drive annual growth in December, while construction and fishing posted declines. Argentina’s third-quarter growth was driven by capital expenditures, consumer spending, and exports.

The International Monetary Fund estimates Argentina will grow five percent in 2025.