Argentina: Highlights of 2005 and the Outlook for 2006

In many ways Argentina had a great economic performance in 2005.

It restructured the public debt, the economy grew one more time at around 9% per year achieving one of the highest rates of growth in the region, investment increased by 20%, exports reached a historical high level growing by 15% mainly thanks to increases in volumes, and unemployment fell by more than 5 percentage points.

It also shows strength in most of the traditional macroeconomic risk indicators, as the government maintained significant primary and overall fiscal surpluses, the current account is still showing a surplus, the country should not face any problem to rollover the relatively small financial requirements, while the banking system has improved its solvency and is now showing profits.