Mensajepor Mr_Baca » Lun Jul 18, 2011 4:20 pm
DJ Argentina's May Proxy GDP Up 8.1% On Year - Indec
18-Jul-2011
BUENOS AIRES (Dow Jones)--Argentina's economic activity continued to clip along at a full sprint in May, with growth rising a steep 8.1% on the year and beating expectations by a wide margin.
Economists polled by Dow Jones Newswires had expected the government to report a 6.9% jump in growth over May 2010. The indicator, known by its Spanish acronym as Emae, takes into account most of the components used to calculate gross domestic product.
The Emae was up 1.5% on the month, the national statistics agency, or Indec, reported Monday.
Recent economic reports pointed to strong growth in May. Automobile production rose 33% on the year, to 79,585 vehicles, while raw-steel output increased 13.1% to 495,800 metric tons.
Strong demand for Argentina's grains and manufactured goods abroad and elevated government spending are fueling a major expansion in Latin America's third-largest economy.
Last week, Deputy Economy Minister Roberto Feletti said the government's latest forecast is for an 8.2% expansion in the economy this year. That come on the heels of blistering growth of 9.2% seen in 2010.
However, an overheated economy and lax monetary policy has translated into one of the highest levels of inflation in the Western Hemisphere.
Most private-sector forecasts put annual inflation at above 20%, while Indec put inflation as measured by its consumer price index at 9.7% in June.