Click Here For The Wall Street Journal Online          Franklin Covey. Get where you want to go.
Get 294 issues of The Wall Street Journal for ONLY $.67 per issue

Investing in Argentina and Argentina Stocks

Discusses *smart* ways of investing in Argentina, primarily thru ADRs on NYSE and NASDAQ. Covers companies like Grupo Galicia, GGAL, Banco Frances, BFR, IRSA(the biggest Real Estate Company in Argentina) IRS, Tenaris (TS), etc. UPDATED SEVERAL TIMES A MONTH.

Wednesday, July 12, 2006

Argentine Economy grows by 8 percent in 1Q 2006, Outlook Postive

The Argentine Government is predicting a growth of 8% for the Economy this year. Figures in for the first 4 months of 2006 indicate the Economy grew by the same percentage over the first four months o 2005.

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.

Enter your email address:

Delivered by FeedBurner