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Group Forecasts Argentina '09 GDP Down 3%, 3%-5% Rebound In '10



BUENOS AIRES -(Dow Jones)- Argentina's gross domestic product is expected to post a 3% decline this year, but is seen rebounding between 3% and 5% next year as the economy gets back on track, the president of Argentina's top manufacturers association said at a press conference late Monday.

"The international scenario has stabilized, and we have reasonably good expectations as a result. We're starting to see a recovery," said Adrian Kaufmann, president of the Argentine Industrial Union, or UIA.

Top agricultural producer Argentina is likely to benefit from strong demand for food as the world emerges from the international crisis, he added.

The UIA forecast stands in contrast to government expectations, which currently predict GDP growth of 0.5% this year and 2.5% in 2010.

The UIA also forecasts an 8% industrial-production drop this year, with a 3% to 5% recovery in 2010. Those figures are much more pessimistic than government data.

According to the national statistics agency, Indec, October industrial production was up 1.2% on the year and climbed 0.2% on the month.

Many economists accuse the government of manipulating data to gloss over the extent of the downturn. The government regularly denies the allegations.

-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@ dowjones.com


  (END) Dow Jones Newswires
  11-24-091109ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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