MercoPress. South Atlantic News Agency

Argentine industry at full steam.

Industrial production in Argentina increased 15,5% in March compared to a year ago, revealed this Monday the Argentine government, an indication that the full impact of the energy crisis is still to come.

March marked also the fastest expansion since October 2003 and represented a 1,3% growth over February. The sectors leading the strong expansion are the automobile industry and printing.

The Argentine economy grew an unexpected 8,7% in 2003 following the historic 10,9% collapse of 2002, and is forecasted to keep growing in 2004 although at a more "normal" pace, 5,5%.

However private estimates believe the economy will keep steaming ahead and reach a 7,4% growth. But much will depend on the supply of gas for industry.

The spectacular rebound of the Argentine economy surprised suppliers and the government to ensure domestic demand has been forced to restrict natural gas to thirty of the most important industrial companies in the country plus limit exports, mainly to Chile, which have caused a diplomatic "threading" of bilateral relations.