Latin America's No. 3 economy is seen growing by 8.3 percent this year and at least 5 percent in 2012, Deputy Economy Minister Roberto Feletti said, adding that next year's forecast takes into account global economic uncertainties.
Since 2003, Argentina's centre-left government has promoted brisk economic growth and robust consumer spending with hefty state spending and an expansive monetary policy. Private estimates put inflation above 20 percent annually but wages have risen at a similar rate, cushioning the impact.
The unorthodox economic policy mix was first introduced by former President Nestor Kirchner, who was succeeded in office by his wife, Cristina Fernandez, in 2007. Fernandez is heavily favoured to win re-election next month.
Feletti, who is running for Congress on the president's electoral list, said it was "logical" to expect continuity in economic policy under a new Fernandez administration, adding he favours measures to bring down unemployment through the promotion of private investment.
Protecting jobs would become even more important in the event of a global slowdown.
A major world food supplier, Argentina has run trade and fiscal surpluses thanks largely to high grains prices and robust Brazilian demand for industrial goods.
"We're keeping a very close eye on the possibility of a reduction in global demand, because Argentina exports nearly 20 percent of its gross domestic product to the world," Feletti said in an interview late on Wednesday.
South American economic policymakers met last month in Buenos Aires to discuss three possible anti-crisis measures: greater use of local currencies for trade; expanded multilateral lending in the region; and the pooling of foreign reserves to help countries at risk.
Next week, Feletti will participate in a meeting of the Group of 24 developing and emerging markets as the world's top economic policymakers converge on Washington for a gathering of the members of the World Bank and International Monetary Fund.
He said Argentina will argue there that smaller ailing European countries should spend more instead of less to jump-start their domestic markets while restructuring their burdensome debts.
Copyright Reuters, 2011