May 9, 2012

Spanish bank forecasts average growth of 4% for Argentina and the region in 2012

The Argentine economy is set to grow 4% this year in line with the rest of the countries of the region according to a report, “Global Situation” from the Spanish-Argentine bank BBVA-Francés.

Brazil however is expected to apply a policy to weaken its currency and improve competitiveness

The report forecasts a soft landing for the Argentine economy as for the rest of the region while the average inflation for the main economies, Argentina, Brazil, Chile, Colombia, Peru and Venezuela is expected to be in the range of 9.3% in 2012.

“The inertial characteristics of the region won’t allow significant improvements in an environment of high prices for commodities, which limits the reach of expansive economic policies in those countries with inflation targets”, adds the report.

The “Global Situation” estimates the world economy will advance 3.6% this year and 4% the following, boosted by emerging economies, particularly from Asia and Latin America.

“With the exception of Brazil monetary policies will overall have a cautious restrictive approach and it is expected that currencies on the whole region will continue to be appreciated. Brazil on the other hand will implement a more accommodative monetary policy”, concludes the report’s chapter on the evolution of the economy in the region for this year. 

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Tags Brazil Argentine Economy Chile Colombia Peru Venezuela BBVA Ytellis Global Consultancy Ytellis