(Bloomberg) -- Argentina’s economy expanded more than expected in December, solidifying the country’s bounceback in the last quarter of the year under President Javier Milei’s watch.
Economic activity rose 0.5% from November, more than the 0.2% median estimate of economists surveyed by Bloomberg. Monthly growth beat expectations the previous month, too. From a year ago, the gross domestic product proxy grew 5.5%, compared with the median estimate of 3.5%, according to government data published Tuesday.
South America’s second-largest economy has been showing consistent signs of gaining momentum after a deep slump exacerbated by Milei’s austerity policies in the first half of 2024.
Wages in Argentina beat monthly inflation again in December, continuing a dynamic that began in April. With wages picking up, private estimates monitored closely by the government indicate poverty declined below 37% by the end of 2024 after surpassing 54% at the start of the year.
Manufacturing, retail and the financial sector helped drive annual growth in December, while construction and fishing posted declines. Argentina’s third-quarter growth was driven by capital expenditures, consumer spending, and exports.
The International Monetary Fund estimates Argentina will grow 5% in 2025.
--With assistance from Rafael Gayol.
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