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Argentine economy to expand 9% this year, says the Central Bank

Wednesday, November 2nd 2011 - 04:20 UTC
Full article 5 comments
The central bank report is more optimistic than the federal government  The central bank report is more optimistic than the federal government

Argentina’s central bank estimates that the country’s economy will expand 9% in 2011, above the central government forecast of 8.3%, according to the latest quarterly report released this week.

The Argentine economy has been growing at ‘Chinese rates’ stimulated by a strong domestic demand, vigorous grain and oilseeds exports and a solid industrial base, particularly automobiles sales to its main trade partner Brazil.

“Domestic demand continues to sustain the increase of local economic activity” said the inflation report for the third quarter of the year. “Private consumption remains as the main engine for economic advance”

South America’s second largest economy expanded 9.2% last year and the administration of President Cristina Fernandez, re-elected by a landslide 23 October, has estimated growth for this year at 8.3% and 5.1% next year.

The central bank said that it expects economic growth next year to continue expanding but at more moderate rates, given expectations of “a weaker increase of international economic activity”.

In related news the Argentine national stats agency, Indec reported that construction grew 11.7% in September compared to the same month last year and 4% over the previous month.

Similarly the use of public service registered a 10.7% increase during September year-on-year, according to Indec. During September, the sectors that increased the most were telephone services (22.1%), tolls (5.5%), and Electricity, gas and water (3.1%).

Compared to August, the index reported that the use of services rose 1.04%, while it climbed 11% during the first nine months of the year.

The tax office AFIP also reported that fiscal revenue climbed 31.8% and totalled 47.555 billion Pesos in October compared to the volume registered during the same month last year. The official data shows the Income Tax rose 44.7% reaching to 8.922 billion Pesos. Meanwhile, the VAT climbed 29% to 13.056 billion Pesos; and the Export Rights, 18.5% to 5.828 billion.

However in spite of the rosy stats, inflation remains as the main challenge for the administration of President Cristina Fernandez since prices according to private estimates has been running at least double the official accepted rate.

Categories: Economy, Argentina.

Top Comments

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  • wesley mouch

    9% growth and 25% inflation does not look so good. Similarly 32% reveneue increase is mostly just inflation.

    Nov 02nd, 2011 - 09:29 pm 0
  • Pirat-Hunter

    9% is a lot better than what is coming from EU, USA and UK convined, LOL but I am sure we will hear the mentally retarded will have many negative thing to say aginst other races, as usuall they might be feeling low selfsteem and need to show people they can be loud, we hear your pain and I can honestly say go tell it to someone who cares, try UK blogs, unless you like to be trashed around like a fag and be treated like the pervert they are.

    Nov 02nd, 2011 - 09:59 pm 0
  • O gara

    The doomsayers have been out a lot recently.Explain Wesley what a wasp name how car sales increase year on year of 34% for October and 32%in the first 10 months of 2011 is not too good.
    You can delude yourself all you like but the Argentine economy is booming while Europe stumbles from one crisis to another

    Nov 02nd, 2011 - 11:07 pm 0
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