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World Bank Forecast Undermines Argentina’s Ambitious Growth Predictions

By: Raquel García - @venturaG79 - Jan 11, 2017, 2:26 pm
Argentina's Ambitious Growth Predictions
Argentina is set to grow more than Mexico and Brazil, but less than Macri was hoping. (Buhola)

EspañolIn its biannual “World Economic Outlook” report, the World Bank predicted that Argentina’s GDP will grow by 2.7 percent in 2017, in contrast to the 3.1 percent that it projected for the previous six months.

It also falls short of the 2017 budget submitted by Mauricio Macri’s administration to Congress, which included 3.5 percent GDP growth.

The World Bank also reportedly forecast GDP growth of 3.2 percent in both 2018 and 2019.

The forecast of 2.7 percent for this year coincides with the forecast for world GDP growth, adjusted downward by one tenth as a result of a reported growing uncertainty surrounding the economic policies carried out by US President-elect Donald Trump.

According to estimates by the World Bank, Argentina’s growth forecasts for 2017-2019 exceed those of Brazil and Mexico, which this year are at 0.5 and 1.8 percent, respectively.

“South America saw a sharper recession in 2016 than in 2015, but is nevertheless expected to rebound in 2017,” the report said.

World Bank officials stressed that the new administration in Argentina and Brazil “seem focused on correcting fiscal and macroeconomic imbalances.”

“The implementation of pro-market reforms that create a favorable business environment and the settlement of Argentina with its creditors were favorable events that improved the perception of investors,” the report said.

The agency warned that policy changes in the United States and in Europe, such as trade restrictions or migration, “could have lasting repercussions in the region.”

 

“A slower recovery than expected in commodity prices would undermine the prospects of the countries in the region that export these commodities,” the report said.

Earlier this week, a Morgan Stanley report praised Argentina’s growth potential and long-term investment opportunities, which it said could be as high as $60 billion over the next five years.

Argentina will not only normalize its economy in the next five years, the bank said, but also increase sustained economic growth in the long term.

Source: Fortuna.

Raquel García Raquel García

Raquel García is a Venezuelan journalist with over 16 years of experience in digital outlets and radios. She currently lives in Buenos Aires, Argentina. Follow her @venturaG79.

Quito Mayor Travels to US in Search of Truth over Odebrecht Corruption

By: Ysol Delgado - Jan 11, 2017, 2:24 pm
The Odebrecht corruption scandal has rocked Ecuador, dividing the country along political lines (

Español Quito mayor Mauricio Rodas traveled to the United States on Tuesday to ask the US Justice Department to disclose the names of officials who received bribes from Odebrecht. Rodas announced that he will denounce the alleged corruption before the Organization of American States (OAS), as well as what he described as a "political persecution by the government of Rafael Correa." Read More: Correa Says He Will be Accused of Corruption in Ecuador Odebrecht Case Read More: Rafael Correa Defends Odebrecht Contracts in Ecuador In addition, the mayor addressed the accusations of Correa, who has fingered Mauro Terán as "the powerbroker in the municipality of Quito" and for having participated in the negotiations of bribes in conjunction with the construction of Quito's metro by the Brazilian construction giant. Mauro Terán was arrested last Friday by the Prosecutor's Office, and has been charged over an unexplained two million dollars worth of deposits in his personal bank accounts over the last two years. Regarding the suspicious bank statements, President Correa has alleged through his Twitter account that the deposits in question coincide with the dates of the Odebrecht metro negotiations. At the press conference, Rodas read an official statement to the public stating that Terán "is an honorable person and I hope that his innocence will be proven during the process." googletag.cmd.push(function() { googletag.display('div-gpt-ad-1459522593195-0'); }); He also noted that Mauro Terán has long collaborated with him in logistics of various projects, with respect to the legal and political fields. The allegations of corruption and bribery have caused a stir in the Andean nation, which is gearing up for presidential elections next month. Current President Rafael Correa has already tried to do damage control, alleging that his administration will be accused in connection with Odebrecht, but asserting that the allegations are baseless. Although Correa's left-wing former Vice President Lenin Moreno is currently leading in opinion polls, centre-right opposition candidates such as Guillermo Lasso and Cynthia Viteri are within striking distance. Given Latin America's swing to the right in recent years, it is likely to be a closely contested election, which could head to an April runoff if no candidate receives 50% of the vote, or 40% with a 10% margin of victory over the closest candidate. Source: La Republica

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