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Argentina and Colombia dispute place as second largest South American economy

Saturday, October 20th 2012 - 05:44 UTC
Full article 26 comments

Argentine Economy minister Hernan Lorenzino struck back at Colombia’s claim that it has overtaken his country to become South America’s second largest economy behind Brazil. Read full article

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  • MaxAue

    Lorenzino, in messages posted on Twitter on Friday said data from the IMF show that Argentina, with a smaller population, has a GDP more than 100 billion dollars larger than Colombia’s.

    ....thought IMF were all crooks and were not to be listened to?!?!

    Oct 20th, 2012 - 06:32 am - Link - Report abuse 0
  • Troy Tempest

    Are there “good” crooks and “bad” crooks?

    Crooks that are “good” one day and “bad” the next??

    Argentina's government is very skilled at telling the “good” information from the “bad” information ;-D

    Oct 20th, 2012 - 06:41 am - Link - Report abuse 0
  • DanyBerger

    No need to dismissed Juan Carlos Echeverry if he want to sell to the world that Colombia is the 2nd economy in SA its fine.

    Argentina should play the underdog card saying that it is the smaller economy in the world who cares?

    Meanwhile Argentina has to keep the policy of re industrialisation in 10 year more Argentina will have a GDP bigger than Mexico.

    So everyone will be happy.

    Oct 20th, 2012 - 06:45 am - Link - Report abuse 0
  • agent999

    Another shining example of Argentinian democracy and accountability.

    Economy minister Hernan Lorenzino - “The Argentine minister never gives press interviews and refuses alls media contacts”

    The guy is an idiot, he is asking the IMF to confirm INDEC's figures on GDP.
    The IMF has already stated they don't accept INDEC/Government statistics are accurate!

    Oct 20th, 2012 - 07:09 am - Link - Report abuse 0
  • Guzz

    Remove the narco from the equation, and Uruguay is a larger market than Colombia...

    Oct 20th, 2012 - 07:20 am - Link - Report abuse 0
  • Pirat-Hunter

    Juan Carlos knew how much money in guns and drugs Colombia was holding, that's why IMF figures didn't match Carlos figures. Everyday week mercopress comes out with at least one report pining one Latin community against another, apparently the fact that Colombia is holding talks with la FARC appears to have no journalistic value for mercopress. No wonder.

    Oct 20th, 2012 - 07:27 am - Link - Report abuse 0
  • agent999

    @6 Pi-rat
    As usual your facts are wrong,

    http://en.mercopress.com/2012/10/20/first-exchange-of-blows-as-colombian-peace-talks-take-off

    Oct 20th, 2012 - 07:33 am - Link - Report abuse 0
  • yankeeboy

    Dany, WTF do you mean here “Meanwhile Argentina has to keep the policy of re industrialisation in 10 year more Argentina will have a GDP bigger than Mexico.”
    Pure delusion
    MFGs are laying off 10's of thousands of Rgs this year. you dolt!

    Don't' be surprised if the car mfgs leave once and for all at the next crash.
    Then watta ya got? nada

    Oct 20th, 2012 - 11:09 am - Link - Report abuse 0
  • Falkland Islands

    as usual with Argentina, a dream, unfortunately it will always turn out to be a denied nightmare.

    Oct 20th, 2012 - 12:25 pm - Link - Report abuse 0
  • Clyde15

    I must have missed something here. According to Argentina the whole S.A,Continent is in perfect loving respectful harmony ?

    Oct 20th, 2012 - 12:38 pm - Link - Report abuse 0
  • mcarling

    With CFK's current anti-economic policies, Argentina (which was the #1 economy in South America and the #2 economy in the world before peronism), the question will soon be whether or not Argentina can be ranked among the five largest South American economies.

    Oct 20th, 2012 - 01:38 pm - Link - Report abuse 0
  • Anbar

    “That affirmation isn’t only inaccurate but also intentionally harmful,”

    “I must have missed something here. According to Argentina the whole S.A,Continent is in perfect loving respectful harmony ?”

    Yes, indeed.

    I wonder if there is any (nation) who can be so mortally offended, so very easily, as this Argentine Government.

    Blink and they take it as an insult to the nation.

    ... of course, that's how populism 'works' ateotd....

    Oct 20th, 2012 - 02:23 pm - Link - Report abuse 0
  • DanyBerger

    @yankeeboy

    “Dany, WTF do you mean here “Meanwhile Argentina has to keep the policy of re industrialisation in 10 year more Argentina will have a GDP bigger than Mexico.”
    Pure delusion
    MFGs are laying off 10's of thousands of Rgs this year. you dolt!”

    I mean what I said in 10 years Argentina if keeping this policy will have a GDP close to Mexico and Bigger than Canada.

    If you take into account that historically the ARG peso was equal to Brazil Real and now ARG peso is less than half of Brazilian Real, etc. ARG economy is close to a trillion dollar now.

    Fluctuation of currency value plays an important part when you measure an economy in dollar terms and always you get distorted figures about the real size of a given economy.

    You have the example of China which is an economy that will surpass US shortly but Chinese govt wants to keep Yuan low to keep surplus in trade and many have no idea of the size and power of China’s economy.

    With Argentina is happening the same the peso exchange rate value is to low. The peso can go easily to be trade at $2.50 for a dollar like use to be before.

    That have been a good equation to have inflation low and boost exports until the guys of “del campo” and UIA wanted a more devaluated peso to increase artificially their earnings.

    Anyway in 10 years we will see...

    Oct 20th, 2012 - 03:03 pm - Link - Report abuse 0
  • yankeeboy

    Dany, You are breathtakingly stupid! Why don't you look at the Arg GDP as compared to other countries for the last 80 yrs. Argentina has fallen further and faster THAN ANY OTHER COUNTRY IN THE WORLD!

    And if you think depreciated the peso is going to make you as rich as Canada you may want to look at Zimbabwe they'll must have the biggest economy in the world according you your idiotic math.

    Good gracious how did someone with such a low IQ learn to type?

    Oct 20th, 2012 - 03:23 pm - Link - Report abuse 0
  • DeMouraBR

    “but again: how reliable are Argentine stats?”
    Hahahaha, made my day!

    Oct 20th, 2012 - 03:27 pm - Link - Report abuse 0
  • Guzz

    Comment removed by the editor.

    Oct 20th, 2012 - 03:32 pm - Link - Report abuse 0
  • ChrisR

    10 Clyde15

    Yes, that goes with the 'Agreement of Perfect Peace' which they signed with the Brits in 1850 and Peron disavowed.

    No change there then. :o)

    Oct 20th, 2012 - 03:58 pm - Link - Report abuse 0
  • DanyBerger

    @yankeeboy

    You are so stupid and ignorant than its is a waste of time to reply you but as I’m close in the neighbourhood...

    The size of a given economy cannot be measure by currency values or measured in US dollar or whatever because the result always is a fiction.

    Bankers use to do that for own interest and the easy to know aprox how profitable x economy can be for them in x currency.

    If you allow bankers and pseudo economists good for nothing to measure countries population they will use dollar exchange and maybe they will arrive to the conclusion that China and India has less population than US and that Argentina has only 8.3 million inhabitants.

    An economy is bigger or smaller for it power to produce and trade goods and services and not to the artificial value given by currency exchange.

    That is the reason why some countries like China where under measured, in the 90 China economy where given a GDP of 398bn dollars by IMF now after 22 years IMF is measuring Chinas GDP at 8trillions USD (nominal) and more than 11 trillions USD (PPP).

    So mister genius can you explain to us how a country can grow from 398bn USD to 8trillions in 22 years?

    Can you explain also why IMF was measuring Arg GDP to 110bn dollars in 2002 and now if given 475bn (us dollar official ER) and close to 800bn in PPP?

    Oct 20th, 2012 - 06:27 pm - Link - Report abuse 0
  • Hook

    @yankee

    My friend went to Colombia after living 1,5 years in Argentina, and when he changed some of the remaining Argentinian pesos he had, the price was 40% less than when he went to Argentina only 1,5 years ago!!!

    and another thing, all the prices in Colombia were exactly the same as 1,5 years ago when he left.

    Oct 20th, 2012 - 10:30 pm - Link - Report abuse 0
  • The Chilean perspective

    18 DanyBerger
    You really must be retarded. You say “An economy is bigger or smaller for it power to produce and trade goods and services ” Which is perfectly right but then you go off to la la land.
    A trading nation does so using the world's reserve currency. All its activity should be ultimately measured in that currency in order to compare it to other economies. You seem to think that the Argentine peso is undervalued. You are wrong it is VERY VERY overvalued, your country has an average yearly M2 money supply increase of 30% and an inflation rate of close to 30%. These two factors should have a drastic effect on a currency but in Argentina's case they have only devalued the Peso officially about 70 centavos since the start of 2011. I think it should be closer to 10 Pesos per Dollar, this would be a good thing and your exporters would benefit. In fact it was the massive devaluation in 2002 that gave the impetus to the growth that argentina enjoyed till now. One thing I should mention Argentina's impressive PPP GDP is totally FAKE. The govenment figures are inflated by the fictitious prices given to the basket of goods and services and WORSE still the exchange rate used is a ridiculous 2.5 Pesos to the Dollar. NO WAY is the economy even close to the size reported, it is all just a wet dream on the part of the Argentines.

    Oct 21st, 2012 - 03:43 am - Link - Report abuse 0
  • Hook

    sorry, said it wrong. He lived 2 years in Argentina and when he went back to Colombia, they gave 60% less for the Argentinian pesos he changed to Colombian pesos, so the ARG-peso had dropped 60% against COL-peso in just two years. Meanwhile many product prices in Argentina went up more than 200% in 2 years(but some, very few products remained the same for some reason, like unsliced chicken) still all the prices in Colombia remained the same when we went back.

    Imagine all the foreign students living and working in Argentina; Chileans, Peruans, Colombians, etc..when they return to their countries after graduating, all their saving are gone.

    Oct 21st, 2012 - 05:35 pm - Link - Report abuse 0
  • GastonBaires

    As mister Berger said this is not an issue. Es para que hable la gilada!

    Oct 22nd, 2012 - 03:28 am - Link - Report abuse 0
  • Hook

    http://www.lanacion.com.ar/1519444-efecto-inflacion-buenos-aires-cara-como-nueva-york

    they claim BA is as expensive as NY

    LOL

    Oct 22nd, 2012 - 03:21 pm - Link - Report abuse 0
  • DanyBerger

    @Hook

    “they claim BA is as expensive as NY”

    Yeah sure and the pigs fly...

    Oct 23rd, 2012 - 09:47 am - Link - Report abuse 0
  • Hook

    24@ shut the fuck up moron!

    Oct 23rd, 2012 - 12:01 pm - Link - Report abuse 0
  • British_Kirchnerist

    Argentina is clearly more developed than Columbia. And more importantly, is not a hellhole of drug cartels, death squads and endless war - surely the right must be a bit embarrased of their Colombian “model”?!

    Oct 29th, 2012 - 02:25 pm - Link - Report abuse 0

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