Primary Balance Soaring

October 2006 | Market Strategy

Argentina's primary fiscal balance (the figure before interest payments) amounted to ARS6.5bn in Q306, rising by 22.8% y-o-y (up from 6.4% y-o-y in 2005). The accumulated primary fiscal surplus for the first nine months of 2006 came in at ARS19.1bn, expanding by 12.9% y-o-y (up from 0.6% y-o-y for the same period in 2005). The government has a very strong record of accumulating successive fiscal surplus over the past three years, and the last primary fiscal deficit dates back to Q102 (see Chart 1).

If you would like to subscribe to Southern Cone Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Southern Cone Monitor please click on the trial link below.