Argentina does not feel the crises

[katti]

just wanted to share this article in the Figaro

 

[SaraSara]

Too bad it's in French.

 

[syngirl]

You can run it through Google Translate. Here's the text (obviously sometimes the translation not the greatest):

-----------------------

Buoyed by Brazil and China, the country's economy should grow by 6.8% in 2010.

Argentina foiled again the predictions of the Cassandras who predicted economic difficulties in 2010. In the first five months of the year, the economy experienced a growth rate of 8.6%. The main sectors that benefited from the significant rebound in the auto, with a production increase of 55.7% and textiles (24%). "Argentina was experiencing a deep crisis in 2001-2002 when the world spoke only growth, but when the financial storm has swept the United States and Europe in 2008, she was spared, says Luis Ureta Sáenz Peña Ambassador of Argentina in France and former boss of Peugeot Argentina. For seven years, Argentina has been growing an average of 7.4% of GDP. "

The country benefits from the dynamism of the Brazilian economy. 75,000 vehicles were exported during the first half of 2010, twice in 2009. The continued demand from China, the main customer of Argentina's agricultural exports, and the excellent harvest of soybeans have been used to fill the state coffers through taxes on exports for the first time, the reserves currencies of countries exceeded 50 billion dollars. Good news never come alone, over 70% of private creditors have joined the new swap debt securities launched this spring, which involved a total of 18 billion dollars. Taking into account the exchange transaction of 2005, this brings the number to 92.4% of private creditors with which Argentina has managed to normalize the situation after its bankruptcy in 2001. "The swap went well, Carlos Quenan analysis, specialist of the Argentine economy in IHEAL.

Rating up

This helped improve the country's international credit rating "in the image of Fitch, which increased from B to B's long term rating. Several banks also saw their Argentine rating improved. This optimism is tempered by inflation remains strong and the controversies still surrounding the body to provide statistics of the country, Indec. "It is the expression of an imbalance which complicates the return to the country's credibility," says Carlos Quenan. The country is sorely lacking investment and the use of its industrial base is at its maximum (80%). According to estimates by Credit Suisse, real inflation is 20% while the official statistics that herald 11%. The president of the central bank, appointed last January, it is disturbed, the statistics for July show an acceleration of the phenomenon. But President Kirchner has rejected any idea of "cool down the economy" by influencing the money supply.

The healthy part of the Argentine economy, according to CEPAL, in a South American context very favorable. Besides Venezuela, which is expected to decline in GDP of 3% this year, all countries show economic health that will make Europe jealous. "These are countries with a strong internal market and a strong participation from Asia to their exports, which have their game well," said Alicia Barcena Executive Secretary of CEPAL.

 

[SaraSara]

Thanks, Syngirl.

 

[A&A]

Article in Bloomberg today how Argentina's debt has actually risen to the level of Greece (which believe or not means ARG debt is getting "safer").

 

[gouchobob]

As long as the Asian economies, particularly China, remain strong then demand for all the commodities produced in South America will remain strong. Just about every country in South America is doing well as a result. The question is how long this can continue. China and other Asian economies are for the most part export driven, their main customers are the U.S. and Europe. Unless the economies in the West get a lot stronger Asian and China are going to slow-down at some point which will directly impact Argentina and South America. My guess this will be played out over the next year or so.

 

[RichardP]

It's interesting to read the comments of the Argentines who essentially refute the article by saying that inflation and crime are out of control and the real picture is not as rosy as this article portrays.

 

[SaraSara]

Inflation and crime ARE out of control.

I no longer use my car to go downtown at night because:

a) A fill-up went from $160 to $220 last week, and
b) I fear getting mugged at a stoplight.

 

[esllou]

if that french article is based on "official" govt figures, then it's not worth the pixels it's printed with.

 

[Napoleon]

When minimum wage goes up 23%, how can anyone take La Presidenta's ~8% inflation rate seriously?

I'm tired of the lies... BASTA LA PASTA!!

(If that's not an expression, it should be. Especially with the overcooking that routinely occurs when cooking the pasta. Has anyone started a thread about the pizza in this country?)