Milei’s First Year: Argentina’s Economic Upswing and the Road Ahead

Argentina’s Economy in 2024: A Rollercoaster Ride

It’s been a year of highs, lows, and a few loop‑tides under President Javier Milei’s watch. Let’s unpack the story, one twist at a time.

GDP – The Spin That Sticks

Q3 2024 grew by 3.9 % over the previous quarter, mainly thanks to a 12 % jump in fixed‑capital investment.
However, overall GDP fell 2.1 % year‑on‑year, showing that the economy’s still in recovery mode.
Construction and retail trade dipped 14.9 % and 6.1 % respectively—a sign that household demand’s still feeling the chill.

Exports – The Export Queen

Real exports shot up a staggering 20.1 % year‑on‑year in Q3, led by a 31.6 % boom in November.
Exports hit USD 6.479 billion, boosting sectors like agriculture, agribusiness, and manufactured goods.
These gains are a bright spot, proving the country’s products can groove on the global stage.

Trade Balance – From Deficit to Surplus

Imports slid 4.3 %, while exports were booming—resulting in a USD 1.234 billion trade surplus in November.
That’s the twelfth straight month of a positive balance—a win that helps pad reserves and steadies the economy.

Investment Woes – A Tiny but Mighty Problem

Gross fixed capital formation dropped 16.8 % year‑on‑year, with sharp declines in construction and machinery.
Despite a quarterly rebound, this slump says the path to long‑term growth is anything but smooth.

Jobs – The Silver Lining, Dark Cloud

Unemployment hit 6.9 % in Q3, the lowest since Q4 2023, thanks to a boom in agriculture.
But the 11.4 % underemployment rate reminds us that many jobs are part‑time or low‑skill—still a social hurdle.

Policy Crossroads – The Big Balancing Act

Balancing structural reforms with inclusive, sustainable growth remains the government’s juggle.
Investor optimism and improving indicators are positive—but lasting progress hinges on tackling macro‑imbalances, deepening trade, and ensuring every sector benefits.

In short, Argentina’s got a mixed bag: exports are flying high, but domestic demand and investment are lagging. Milei’s real test is turning these bright sparks into a steady, equitable power supply for the whole country.