2024 ended with surprising results for global financial markets, with Argentina achieving a stunning triumph, Brazil recording significant losses and Israel, despite the ongoing conflict, gaining ground. These are the results, in many ways surprising, of the various markets expressed in dollars. The Buenos Aires stock market is the best with a rise of 63.5% while the Brazilian one is the worst with a decline of 30.6%. Israel, despite the war, is in second place at +34.5%.
Argentina top in the world
Argentina’s Merval index shone in 2024 with an impressive increase of 172.52%, reaching 2,533,635. This record result was fueled by a number of positive factors, including the macroeconomic reforms implemented under the presidency of Javier Milei. The fiscal adjustment, deregulation and economic stabilization measures have reduced country risk, lowering it from 2,000 to 650 points, attracting foreign investors and contributing to a dramatic rise in market capitalisation, which increased by 620%. The energy sector, with a positive trade balance and growth in oil exports, further contributed to the extraordinary result. Argentina has demonstrated its resilience and ability to attract capital, emerging as the world’s top stock exchange in 2024.
Brazil, the worst
In contrast, Brazil saw a disappointing performance. Despite the economy being positioned as the largest in the area, São Paulo’s Bovespa index recorded a loss of around 10% over the year. The devaluation of the real against the dollar made the balance sheet even worse. The Lula government’s economic management has encountered difficulties, with the executive struggling with an unstable parliamentary coalition and insufficient reforms, such as the tax reform which led to VAT reaching 28%, the highest rate in the world. The exchange rate with the dollar reached record levels, exceeding 6.2 reais, and inflation closed the year at 4.7%, above initial forecasts. GDP growth, which saw a slight recovery in 2024, failed to compensate for the slowdown expected for 2025, with the International Monetary Fund lowering its growth estimates to 2.2% for next year. Brazil, therefore, ranked among the worst global stock market performers in 2024.
Israel surprises
Israel surprised everyone with a 20.87% increase in its main stock index, despite the ongoing conflict that has marked the country in 2024. This positive result, with a gain of 394 points, was supported by a solid performance of the stock market and continued investor confidence, despite geopolitical uncertainties. Israel has demonstrated extraordinary resilience, ranking second among the best-performing stock markets of 2024, an outcome that few would have predicted in light of the war situation.
Year of contrasts
2024 has highlighted huge differences in global financial markets. Argentina has shattered all expectations, with a record performance that has cemented its position as the best stock market in the world, thanks to effective economic reforms and growing investor confidence. On the other hand, Brazil suffered due to political uncertainties and internal economic difficulties, while Israel surprised with robust growth despite the war, placing itself in second place. The disparity in performance between these countries reflects global economic and political dynamics, with signs of hope and challenges still to be faced.
