MercoPress. South Atlantic News Agency

Argentine GDP expansion in 4Q lowest in five years

The Argentine economy expanded 4.9% in the last quarter of 2008 compared to the same period a year earlier and dropped 0.3% from the 2008 third quarter. This would mean the slowest expansion in five years, according to the latest figures released by the controversial Statistics Institute, Indec

The late Friday release also showed that the Argentine economy last year grew 7%, which is the lowest since the Argentine economy melted in 2002 and GDP contracted 11%. The administration of President Cristina Fernandez de Kirchner had anticipated 9% growth for 2008. Argentina for the last six years has experienced an unequalled economic boom at Chinese growth rates averaging a sustained plus 8%. However the cycle seems to have come to an end because of the global financial crisis and the dramatic fall in the international prices of agriculture and mineral commodities, Argentina's main exports. Some Argentine economists are forecasting the economy will end 2009 in a recession, although the government insists that growth is estimated at 4%. According to INDEC, global supply in the fourth quarter expanded 3.8% over the same period a year ago, which was made up of the 4.9% GDP expansion and 3.9% reduction in imported goods and services. Similarly global public demand increased 7.3% and private demand 4.3%. However gross domestic investment was down 2.8% and exports of goods and services contracted 11.3%