Argentina economy grows at 9% in first half of this year

Argentina's economy maintained a strong momentum in the first half of this year, with a year-on-year growth rate of 9 percent, according to a report released by the national economic statistic bureau of Argentina on Tuesday.

According to the report, Argentina's economy has kept growing for the 31 consecutive months prior to June 2005. The economy grew by 8.6 percent this June over the same month last year. Industry, construction, agriculture, animal husbandry and the financial market all continued to develop smoothly.

Argentina's 2005 annual economic growth rate could exceed the forecasted 6 percent if Argentina's economy keeps the growing in the second half at the same fast pace that it has established in the first half, said the report.

Unemployment and poverty rates have both lowered as Argentina's economy took an upturn. The Ministry of Economy estimated that the unemployment rate has dropped to a current level of around 12.1 percent from 14.8 percent in 2003. However, 14.5 million Argentinians are still living under the poverty line despite the fact that this number has lessened in recent months.

In addition, the average income growth rate still can't keep up with the inflation. According to statistics, average prices in Argentina have risen by 60 percent and average earnings have only grown by 50 percent since a financial crisis broke out in 2001.

Source: Xinhua