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Argentina insists with 5.1% growth forecast for 2012 despite signs to the contrary

Friday, June 29th 2012 - 05:21 UTC
Full article 65 comments
Minister Lorenzino: “we continue to maintain the projections” Minister Lorenzino: “we continue to maintain the projections”

Argentina's government is sticking to its 5.1% growth forecast for 2012 enshrined in the budget, Economy Minister Hernan Lorenzino said on Thursday, despite recent data that shows a sharp deceleration.

Latin America's third strongest economy expanded 8.9% in 2011 but growth is slowing sharply due to sluggish global conditions, slackening demand from top trade partner, Brazil, and the impact of high inflation at home.

“We continue to maintain the projections that are contained in the budget,” Lorenzino told a news conference. “We're tracking each variable of the economy to try to find any problem that could arise, face up to it, make the decisions needed and resolve it.”

Lorenzino said recently unveiled programs to promote loans to homeowners and retirees were part of a government drive to “maintain our economy's dynamic through consumer spending, the domestic market, and job creation.”

Argentina’s May industrial production fell 4.6% year-on-year, marking the second-biggest monthly decline since September 2002, when the economy was deep in recession.

Government data also showed economic activity ground to a virtual standstill in April on the heels of a first quarter in which growth cooled off.

The minister held the press conference to announce 1 billion pesos (221 million dollars) in financial assistance for Buenos Aires province, which is facing difficulties paying public employees' salaries.

Categories: Economy, Politics, Argentina.

Top Comments

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  • Britworker

    Cooking the books and fooling only the Argentines.

    Jun 29th, 2012 - 07:19 am 0
  • LEPRecon

    More lying and sticking their heads in the sand hoping the bad things go away.

    Of course by not telling the people the truth, when the sh!t hits the fan, it comes as a bigger shock.

    Remember in 1982, the military Junta kept telling the people that Argentina were winning and slaughtering thousands of British servicemen, right up to 14 June 1982.

    Then they surrendered, and the people where more shocked because until then they honestly thought that they were winning.

    Maybe the Argentine government should actually start telling the people the truth, and start implementing some sensible policies to help the economy recover, instead of constantly robbing Peter to pay Paul. It'll be a novel approach in Argentina, and perhaps the people will all pull together in the time of crises.

    But Argentina won't do that, after all, burying your head in the sand is so much easier than working at the problem.

    Jun 29th, 2012 - 07:44 am 0
  • Ahab

    @2 LEPRecon

    Better be careful about that. The population has probably got so used to being lied to, the shock of actually being told the truth might be too much for them.

    Better wean them off the lies with some half-truths or minor facts distortion. Don't want people going cold turkey (no CFK pun inteded).

    Jun 29th, 2012 - 08:30 am 0
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