Argentine economy to expand 1% this year, according to private estimates
The Argentine economy is expected to grow 1% this year with manufacturing activity virtually stagnant, according to the head of a leading economic consultancy agency in Buenos Aires who nevertheless admits that the government stats “will probably show a better performance”.
“Manufacturing is down from a year ago, for example basic metals and refining, and overall there will be zero expansion in manufacturing in 2012 and probably 1% for GDP”, said economist Orlando Ferreres who attributed the current situation to three main causes.
“Brazil is bearish and its demand of Argentine manufactured goods is down, the drought meant lower than expected soybean and corn crops and the dollar clamp has almost paralyzed the construction industry”, explained Ferreres.
Because of its long experience with high inflation, the Argentine real estate market functions with US dollars and the severe limitations of holding, saving and trading with the greenback imposed by the Cristina Fernandez administration has virtually frozen the housing market.
According to his consultancy Economic Activity Index, the Argentine GDP in August suffered an annual contraction of 0.5%, although the index was up 0.9% in August compared to July.
The overall slowing down of the Argentine economy according to economist Ferreres contrasts with the optimistic forecast for the 2013 budget elaborated by the administration of President Cristina Fernandez and which this week begins to be discussed in Congress.
The Argentine government estimates the economy to expand 4.4% in 2013, with inflation reaching 9% in the twelve months and the dollar trading at an average of 5.10 Pesos. Currently at the official exchange rate the US dollar trades at 4.65 Pesos but in the parallel market at 6.45 Pesos.
Likewise revenue is expected to grow parallel to inflation and the trade surplus is estimated to reach 13 billion dollars in the twelve months.
The government will keep to its policy of cancelling sovereign debt with central bank reserves and will continue to absorb government offices cash surpluses with bonds to face expenditures.
On more specific issues there is expectation regarding minimum values for taxing income and assets given the high level of inflation.
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At what point do they realise their economic policies are a complete failure and try something else? When the people properly see the mess they are in the pot banging from the other night will seem like a lullaby to Christina.
She really has not thought this through...
finance.fortune.cnn.com/2012/09/19/luxury-brands-leave-argentina/?iid=HP_LN
I wouldn't hope for a banner year in Soy from Argentina one more year like the last one will probably bankrupt most of the farmers.
Moody's Investment Service Agency has downgraded Argentina's outlook from stable to negative stating that it was due to risky economic policies* along with the lack of confidence in official statistics **. Moody's assured that it could cut the country's ratings to Caa if its decisions affect the economy and its debt.
* number one protectionist country in the World
** telling lies about inflation and growth prospects
I don't understand how you can treat fowl, ooops, foul le our aranguage. I guess that you are a Brittard in disguise.
5/100 of a once for 5 gold pesos.
10/100 of once for 10 gold pesos
20/100 of an once for 20 gold pesos.
50/100 of an once for 50 gold pesos.
and one once for 100 pesos.
Every neo liberal “consultant” Who is definitely against Argentina is a news here!
In Argentina even TN which is part of Clarin is saying something else.
MP where do you find news that doesn’t exist???
You are truly retarded.
Opps note to PH
develop a plan to buy equipment from the USA
Wake up poeple!!!
Argentine Economy Minister Hernan Lorenzino says the country's inflation will remain at just 11 percent next year, about a third of what private analysts say the real annual inflation rate is in the South American country.
Lorenzino also says the peso will decline just 9 percent in value against the dollar as the economy rebounds to a healthy 4.4 percent in growth.
Cap, Did you see CFK got a little slap down again today? She announce an Apple supplier setting up factories in Arg in July but the ended up choosing Brazil instead? Another bullet train shot down! I don't' understand why they don't keep their traps shut until the deal is done. It is really embarrassing.
America invented wars, kill people, send their own citizens die, for a undignified Purpose and above all attempts fails.
How do you call that ?
I did not read that, but there would be not profits building in argentina because of the policies.
Argentina started a war in 1982, killing people and sending their citizens to die for an undignified purpose(trying and failing to bully 2000 people who had never lifted a rifle against them) and above all attempts failed as the forces of democracy drove them back home, where Argentine soldiers were treated like scum by their own people on their return.
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