Argentine Economy grows by 8 percent in 1Q 2006, Outlook Postive
Inflation, however, is growing at double digit rates.
See Reuters story here.
Economies in their initial phase of recovery after a major collapse can have this problem ( seen in Russia and Malysia in the 90's after their collapse), but in the long run, Argentina should be back on track to become a sizeable economic force in South America in the next five years. Right now the regions' stars are Chile and Mexico, and of course Brazil.
The country still lags Governmental support for technological innovation-a key factor in improving productivity. Electronics and Computers imports are taxed heavily, which is one reason why celluar calls rates in Argentina are some of the most expensive in the world. This is a bad idea-cell phones clearly improve productivity (you don't have to go to so many meetings!). However, a cash-strapped cautious Government wants money from high end fronts like Technology, so their high taxes on electronics and computer products are understable. These duties should come down in the coming few years as Argentina becomes more comfortable in it's recovery, which should give productivity a great boost.
The Argentine nation boasts some great Universities and a well-educated population, once the stage is set for the workers and companies to do well, and corruption eliminated, the economic conditions and the stock markets should show wonderful gains.
Sanjay John G.