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Argentina forecasts 9% growth in 2021, up from previous 8% estimate

FILE PHOTO: Argentine one hundred peso bills sit underneath United States one hundred dollar bill in this picture illustration taken September 3, 2019. REUTERS/Agustin Marcarian/Illustration/File Photo

BUENOS AIRES (Reuters) – Argentina’s economy will grow 9% in 2021, recovering much of what it lost last year during the COVID-19 lockdown, the economy ministry said on Tuesday, raising its previous estimate of 8% growth this year.

The new estimate is also above the 8.3% forecast by analysts in the central bank’s latest monthly survey.

“Today the Argentine economy is undergoing a solid recovery,” a ministry statement said, quoting Economy Minister Martin Guzman. “All sectors of the Argentine economy are growing.”

Inflation, however, is running at 52.5% annually, according to the most recent official data. Analysts polled by the central bank expect consumer prices to rise 50.3% in full-year 2021.

On Sunday Argentines will vote in congressional elections after the official Peronist coalition took a shellacking in the September primaries. Pre-election jitters contributed to a drop in the official peso rate on Monday, when it closed at an all-time low of 100.05 to the U.S. dollar.

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