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Argentina's economy emerged from a severe recession in the third quarter of 2024 in a milestone for libertarian President Javier Miley in his bid to end the country's long-running crisis.

GDP rose 3.9 percent in seasonally-adjusted terms from July to September compared with the previous quarter, the country's statistics agency said Monday, marking the first quarter of growth since Argentina entered recession in late 2023.

Compared to the same period in 2023, GDP shrank 2.1 percent for the third quarter.

The rebound comes like this mercy One year in office, during which he has brutally cut spending and waged a ferocious deregulation campaign. The program brought the country's triple-digit annual inflation down and the U.S. Winning glowing endorsements from the likes of President-elect Donald Trump and one of his closest advisers, billionaire Elon Musk, has made the libertarian one of the most prominent leaders of the global right. .

of Argentina Sovereign bonds climbed on Monday, with a premium over U.S. Treasuries that investors call for holding its debt at 4.4 percent to 677 basis points, from less than 2,000 since Miley took office.

The economic crisis, mainly due to previous governments' use of inflationary money printing to fund spending, deepened as austerity and inflation bit in the early months of Miley's presidency. The country's poverty rate increased by 11 points to 53 percent in the first half of 2024.

While JPMorgan said it expects Argentina's economy to end 2024 with an annual contraction of 3 percent, it is projecting 5.2 percent growth in 2025. This will only return to GDP per capita levels in 2021, however, when the economy was recovering. Pandemic

The expansion was driven by a rebound in consumer spending and capital investment from a sharp decline earlier this year, and continued strong growth in agricultural and mining exports. Manufacturing and manufacturing remain deeply depressed.

Analysts have warned that if he is to win midterm elections in late 2025, Miley must deliver sustainable economic growth to raise Argentina's living standards, where he will bolster his La Libertad Avanza's small congressional minority. would expect

Major challenges remain for his government, including lifting Argentina's capital and currency controls, which are stifling foreign investment and preventing the central bank from building up its hard currency reserves.

Sebastian Menescaldi, director of consultancy Ecogo in Buenos Aires, said he expected the economy to continue growing in 2025 "albeit at a slower pace than the initial rebound".

“That would still give Miley a strong 5 percent next year. . . But the impact will be felt very unevenly between industries and groups of workers,” he added.