MercoPress. South Atlantic News Agency

Argentine economy expanded 2.7% in March, says government

Argentina's government said on Thursday the economy grew a better-than-expected 2.7% in March compared with the same month last year and closing the first quarter with a surprising 2.3%. But many analysts say the slowdown is far sharper.

Many private economic analysts and consultants say official data on growth and industrial output has been overly rosy in recent months, mirroring a two-year controversy over inflation and other vital statistics in Argentina.

“We don't think the government will become more forthcoming about macroeconomic statistics in the near term because of the political cost it would entail,” Credit Suisse said in a report earlier this week.

The bank said it expected Argentina's gross domestic product to shrink by 2.5% this year, but said official data would probably not reflect that.

President Cristina Fernandez de Kirchner, who faces a tough in June 28 mid-term election, said this month: “We will grow again this year, no doubt about it.”

The government's monthly EMAE economic activity index showed March's activity fell 0.2% from February. The EMAE, which measures most elements of GDP, showed 2.3% year-on-year growth in February, according to revised figures, and 6.3% growth in March 2008.

A monthly poll by the Central Bank also forecast March economic growth at a median of 2%.