INSUBCONTINENT EXCLUSIVE:
(Analysis) Argentina has undergone a striking economic transformation throughout 2024, setting the stage for what many analysts believe
could be a significant, albeit cautious, recovery in 2025
Index soared by 172% in peso terms, outperforming global competitors
His administration cut 10 ministries and 33 secretariats, dismissing 32,000 public employees
The country achieved a $17.1 billion trade surplus in the first eleven months of 2024
Exports surged by 18.1%, reaching $72.6 billion, while imports declined by 20.2%
The economy showed signs of recovery with 3.9% GDP growth in Q3 2024 compared to Q2.The energy sector experienced a boom
Daily oil production hit 738,000 barrels in September 2024, a 15% increase from the previous year
The Vaca Muerta shale formation accounted for 58% of this output
underwent a comprehensive modernization program
The country acquired 24 F-16A/B Block 15 MLU fighters from Denmark, its largest arms purchase in history
Argentina formally requested to become a NATO global partner and joined the Combined Maritime Forces.The labor market showed resilience
despite economic challenges
Unemployment dropped to 6.9% in Q3 2024, down from 7.6% in the previous quarter
JP Morgan announced plans to add 1,500 new positions to its Buenos Aires operations over five years.Economic Outlook for 2025: A Cautious
ReboundThe Javier Milei administration forecasts 5% GDP growth for 2025, with inflation dropping to 18.3% and an official exchange rate of
1,207 pesos per US dollar by December
The government also anticipates a slight fiscal surplus, indicating improved financial management.International organizations offer similar,
though slightly more conservative, projections
The World Bank and IMF both predict 5% growth, while ECLAC estimates 4.3%
Metamorphosis: From Crisis to Comeback and Beyond
productionIncreased investments in the energy sector, particularly in Vaca Muerta shale formationNormalization of agricultural
exportsPrivate consumption growth as inflation declinesPotential interest rate cuts stimulating economic activityThe labor market may face
could play a crucial role in the 2025 recovery
Daily oil production, which hit 738,000 barrels in September 2024, is expected to continue rising
sector may serve as a key driver of recovery, with banking sector penetration potentially rising to 19% of GDP over the next five years
