Argentine Economy Keeps Chugging Ahead

Argentina´s GDP expanded 8 percent in the first quarter of 2005 compared to the same period a year ago, and 0,5 percent over the fourth quarter of 2004, according to the latest release from the Statistics and Census Office.

However, the Argentine economy´s overall performance also showed that gross domestic investment expanded at an annual 13,9 percent which represents a considerable slowdown compared to other previous quarters.

Argentine Economy Minister Roberto Lavagna has on several occasions said that Argentina needs an annual investment of 23 percent of GDP to sustain a long-term growth of 4 to 4,5 percent. The figure for 2004, clearly an expansion year, was 21 percent.

The Argentine economy is expected to end 2005 with a 6 percent growth, although some private analysts believe that forecast can be even higher.