Argentina Economy Surges

March 22nd, 2011
in econ_news

argentina map Econintersect:  Argentina had one of Latin America's swiftest growth rates in 2010, although private analysts say official data exaggerates the scope of the expansion.  The government said on Friday (March 18) that GDP expanded 9.2% in the fourth quarter versus the same period of 2009 and grew 2.5% from the third quarter  Private consumption jumped 11.5%  in the fourth quarter, compared with the year-earlier period, according to the INDEC national statistics institute.

Follow up:

 

From Reuters

Argentina's economy is driven by robust consumer spending, lucrative grains exports and industrial production, led by the automotive sector.

The trade surplus, however, has been shrinking as imports grow at more than double the rate of exports. High inflation is pushing up local production costs, and a fairly stable exchange rate reduces the relative cost of imports.

Inflation is masked in Argentina by widely discredited official data. Private estimates put annual inflation at around 25 percent versus the 10 percent reported by the government.

Analysts have said the inflation data also distorts economic growth figures, which are adjusted for inflation.

Strong growth is good news for President Cristina Fernandez, who is expected to run for a second term in October's presidential election. She is stoking the economy with loose monetary and fiscal policy despite inflation.

"This raises the risk of a hard landing of the economy in 2012," Goldman Sachs senior economist Alberto Ramos wrote in a research note.

Source:  Reuters









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved