In 2023, Argentina’s economy shrank by 1.6%, with a 1.9% GDP drop in the last quarter reported by the national stats agency Indec.
Despite this, the employment rate edged up by 0.3% to 45.8%, and the unemployment rate stayed constant at 5.7%.
The World Bank’s 2024 outlook injects a dose of optimism, forecasting growth of 2.3% and 2.5% for the next two years in Latin America and the Caribbean.
This positive shift anticipates inflation reduction and interest rate cuts by central banks, smoothing the way for investments.
Argentina is set to witness a 2.7% growth within this promising regional landscape.
At year’s end, Argentina’s external sector stood strong, offsetting broader economic challenges.
A slowdown in export growth to 7.6%—mainly from a dip in service exports—was partly mitigated by a 5.6% rise in goods shipments.
Meanwhile, 2.2% year-on-year import growth marked a 6.5% decrease from the previous quarter, contributing to a 2.1% uptick in external demand.
These figures not only spotlight Argentina’s immediate hurdles but also its recovery potential amidst wider Latin American trends.
The country’s economic durability, especially against global dynamics and regional flux, stresses the need for flexible policies and a rebound opportunity in the years ahead.
Navigating through these complexities, Argentina’s focus on external trade and employment trends will be key to its stabilization and growth.