Argentina manages to get out of economic downturn this year

By Alimat Aliyeva

Argentina's economy has emerged from a long recession, recording gross domestic product (GDP) growth for the first time since late 2023, Azernews reports.

According to the Statistics Office of Argentina, in the third quarter of 2024, the country’s GDP grew by 3.9 percent compared to the previous quarter, when a decline of 1.7 percent was recorded.

The economic recovery was primarily driven by increased consumer spending and business investment, as well as robust growth in agricultural and mining exports.

It is important to note that President Javier Milei, who took office on December 10, 2023, called the country’s economic situation "critical" during his first speech as head of state. He emphasized the need for shock measures to stabilize the economy. A staunch advocate of minimal government intervention, Milei believes that reducing the budget deficit by cutting public spending is key to addressing Argentina’s economic challenges.

However, despite the positive third-quarter GDP growth, the country has faced a significant rise in poverty. According to the Argentine Statistical Institute, the poverty rate surged from 42 percent to 53 percent in the first half of 2024. Additionally, the economy contracted by 3.4 percent during the same period, reflecting the broader struggles the country faces as it seeks to recover.

Interestingly, while the recovery is a positive sign, Argentina's economy remains fragile, and the effectiveness of President Milei's austerity measures will be crucial in shaping the country's long-term economic future. As Argentina grapples with inflation, high poverty rates, and a massive public debt burden, the path to stability will require a careful balance of reforms and social support.