Argentina's economy minister optimistic about growth

Argentina's Minister of Economy and Production Felisa Miceli said she was optimistic about Argentine economic growth, media reports said in Buenos Aires on Saturday.

In her report at the World Bank and IMF spring meetings in Washington, Felisa said Argentina's economic growth was estimated at 8.0 to 8.5 percent for the first two months of 2007 and that she was optimistic about the economy.

Investments are at their highest level for the past 20 years, Felisa said, while warning that the country still faces the challenge of transforming the economy's structure and seeking more added value for the production sector.

In spite of Argentina's rosy economic outlook, the IMF advised the country to raise interest rates to slow down the economy and put inflation under control.

Disagreeing with the IMF's advice, Felisa said any economic policy would have its negative sides and Argentina would inevitably face inflation pressure after four consecutive years of robust growth, with the annual rate close to nine percent.

The IMF predicted that Argentina will top Latin America's economic growth in 2007 with 7.5 percent. The region's average will be 4.9 percent.

Meanwhile, the country's inflation rate stood at 10.9 percent in 2006 and was estimated at 10.3 percent for this year.

Source: Xinhua