Argentina Manages To Get Out Of Economic Downturn This Year
Date
12/17/2024 3:15:58 PM
(MENAFN- AzerNews)
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.
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