BUENOS AIRES (Reuters)

Argentina’s economy shrank 1.7% in 2024 compared to the prior year but expanded for the second consecutive time in quarterly terms in the last three months of the year, according to the country’s statistics agency.

Argentina’s gross domestic product (GDP) expanded 1.4% in the fourth quarter compared to the previous one in seasonally-adjusted terms, marking the second consecutive quarterly expansion.

Year-on-year, Argentina’s GDP also posted an increase of 2.1% in the October to December period, beating analysts’ forecasts of a 1.7% expansion.

The economy faltered in early 2024 as industry slowed amid harsh austerity measures from libertarian President Javier Milei, but showed a rebound in later months of last year.

Inflation has slowed to 66.9%, as the government seeks to tackle economic woes by removing capital controls, but residents still struggle with spiraling costs and cuts to public services.