Argentina's economy exceeded expectations in October, driven by wage improvements and a decline in poverty rates. These developments signal positive recovery signs following the deep recession the country experienced earlier this year.
Government data revealed a 0.6% economic growth in October compared to September, surpassing economists’ forecasts of a modest 0.2% growth.
Bloomberg reported that wages rose by 4.6% in October compared to September, outpacing monthly inflation for the seventh consecutive time.
This marks a significant shift as inflation previously eroded citizens' purchasing power earlier this year. However, economic activity declined by 0.7% compared to the same month last year.
Key sectors contributing to annual growth in October included mining, finance, and agriculture. In contrast, construction and manufacturing sectors faced declines.
In addition to rising wages, employment showed slight improvement. Data indicated that poverty rates fell below 39% of the population in the third quarter, a significant drop from over 54% at the beginning of the year.
Argentina’s economic recovery follows its emergence from recession in the third quarter, supported by increased investment, consumer spending, and exports.
This progress comes despite the impact of President Javier Milei's austerity measures.
Economists predict a 3% contraction in GDP for the current year, with a projected growth rebound of 4.2% in 2025.
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