Economy / Argentina
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.
Macroeconomic Forecast Argentina
October 2006 | Macroeconomic ForecastsSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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.
The primary budget surplus (the fiscal balance before debt servicing costs) amounted to ARS2.21bn in August, rising by 19.9% y-o-y. The accumulated primary budget surplus for the first eight months of 2006 widened to ARS16.9bn and increased by 10.6% y-o-y during the same time period. The healthy budget is largely a result of strong economic growth during H106 and double-digit headline consumer price inflation (CPI), which significantly boosted government tax revenues. We expect real GDP growth to slow to 4.5% in 2007, which is likely to negatively affect next year's tax revenue growth. Moreover, President Nestor Kirchner's large fiscal spending