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Argentina 4Q Unemployment Falls To 6.7% On Economic Boom

BUENOS AIRES -(Dow Jones)- Argentina's unemployment rate fell to 6.7% in the fourth quarter as a fast-growing economy continued to add jobs, according to government data.

The figure represents a sharp decline from the 7.2% unemployment rate reported in the third quarter, and 7.3% in the fourth quarter of 2010, national statistics agency Indec said in a statement Wednesday.

The report came as little surprise as President Cristina Kirchner had previously announced the fourth quarter unemployment rate on Jan. 25.

Argentina's economy expanded 8.8% last year and 9.2% in 2010 thanks to loose monetary policy, hefty government spending and strong foreign demand for Argentine grains and manufactured goods.

However, the economy is widely expected to grow at a slower pace this year. Trade with neighboring Brazil will likely be less favorable and double-digit inflation is slowly eroding the competitiveness of Argentina's manufactured exports.

The Central Bank of Argentina's most recent forecast puts GDP growth at 6% in 2012.

-By Ken Parks, Dow Jones Newswires; 54-11-4103-6740, ken.parks@dowjones.com

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