Strong Q110, But Major Troubles Await

BMI View: While we are upgrading our 2010 real GDP growth forecast to 4.3% from 1.5% previously on the back of strong Q110 growth data and ongoing government stimulus measures, we caution that headwinds are starting to gather around the Argentine economy. As such, we forecast growth to slow to just 1.8% in 2011 and believe that the legacy bequeathed by President Cristina Fernández will take its toll on the country's economic trajectory over the medium term.

To read the full article, please choose one of the following options: