Argentine cenbank sees 6 pct growth 2011 – report

BUENOS AIRES, Dec 27 (BestGrowthStock) – Argentina’s economy will
grow by around 6 percent next year, according to a central bank
estimate published by daily newspaper BAE on Monday, expanding
at a faster clip than the government originally predicted.

Latin America’s No. 3 economy is seen growing by about 9
percent this year, and the government forecast a 4.3 percent
expansion for 2011 in its budget bill, which many opposition
politicians criticized as being too conservative.

In its 2011 monetary program due to be approved this week,
the central bank also forecast the peso would end next year at
4.20 per dollar, which represents a 5.2 percent depreciation
versus the latest price on the interbank market (ARS=RASL: ).

The central bank intervenes nearly every day on the foreign
exchange market to prevent the peso from firming against the
dollar in a bid to keep local exports competitive.

The bank’s monetary program also contemplates a 28 percent
increase in money supply next year, according to the broad M2
measurement.

In Argentina’s case, money supply growth reflects
expectations for robust economic growth and inflation estimated
privately at between 25 percent and 30 percent next year.

Officials at the central bank were not immediately
available to comment on the report in BAE, a newspaper that is
seen as close to the government.

Argentina’s growth is being fueled by strong consumer
demand, coupled with high prices for the country’s agricultural
commodities and demand for goods such as cars from neighboring
Brazil.
(Reporting by Alejandro Lifschitz; Writing by Hilary Burke,
Editing by Chizu Nomiyama)

Argentine cenbank sees 6 pct growth 2011 – report