Argentina has rebounded strongly from the 2002 crisis, but some analysts are getting worried about inflation and the low level of investment. How would you reassure the international financial community?
Concerning your second point about investment: the level in the final quarter of 2004 was at a peak of 21% of GDP. In the first quarter of this year there was a fall to about 19.5% but this is quite usual in the first quarter owing to seasonal issues. The provisional figures we have for the second quarter are extremely positive and probably we will recover to 21%.
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| Roberto Lavagna, Economy minister |
In fact we need another two or two-and-a-half points – an extra $3.8 billion of investment – which historically would give us [a level] that is very high by Argentine standards. If we want to continue a rate of growth of no less than 5% we will need this additional level of investment. We think about 1% of this two-and-a-half additional points will come from public utilities. The remainder will come from the tradeable sector of the economy, basically industry and agriculture.