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Argentina to grow more than 6.5 percent in 2011

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The central bank said robust domestic demand would keep fuelling the expansion in Latin America's No. 3 economy.

It said growth so far this year in industrial output, construction and public services showed the economy was still going strong.

"For 2011 we expect activity to expand more than 6.5 percent and unemployment is seen close to its lowest levels in the last 20 years," the central bank report stated.

The government reported unemployment at 7.3 percent in the fourth quarter of 2010.

While growth is seen slowing in 2011, inflation is expected to remain stubbornly high.

Private economists say inflation hit about 25 percent last year, well above the 10.9 percent reported by the government.

The central bank said price rises have eased somewhat in annual terms during the first quarter of this year, which independent estimates also reflect.

                       Copyright Reuters, 2011