Argentine President Re-Elected, Buoyed By Strong Economic Performance

By: EW News Desk Team   Date: 24 October 2011

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EW News Desk Team

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EconomyWatch, News Desk Team

 

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24 October 2011

Argentine president Cristina Fernandez has been re-elected in a landslide victory Sunday, after her government achieved strong economic results and shared the wealth of a booming economy. 

 “Count on me to continue pursuing the project,” Fernandez vowed in her victory speech. “All I want is to keep collaborating ... to keep Argentina growing. I want to keep changing history.”

With the Argentine economy having grown 9 percent last year, Fernandez crushed a fractured opposition who trailed her by at least 35 percentage points. With 53 percent of Argentines voting for Fernandez, her margin of victory is expected to be the widest in a presidential election since democracy replaced a brutal military dictatorship in 1983.

“She has taken measures that have helped improve the quality of life of the people,” said Fabian Perechodnik, a political analyst at Poliarquia Consultores in Buenos Aires. “None of the opposition candidates have offered an alternative.”

News sites across the globe have reacted to the news of Fernandez’s electoral victory, with opinions attributing her win to her country’s economic recovery while others accused her of doctoring economic data.

British newspaper The Guardian said that “Under the Kirchner administrations, Argentina has achieved the fastest growth in the west – after defaulting,” placing a focus on the economic growth and reduction of poverty.

Since Argentina defaulted on US$95bn of international debt nine years ago, the economy has done remarkably well. For the years 2002-2011, using the IMF's projections for the end of this year, Argentina has chalked up real GDP growth of about 94%, stated the Guardian.

A focus on the country's recovery was magnified as a model example of how to restructure the economy, “Argentina's experience over the last nine years has important implications for how we look at economic policy."

Furthermore, how the weaker eurozone economies (Greece, Portugal, Spain, Ireland) choose to deal with economic crisis was emphasized, suggesting that to restructure their debt crisis they "might be better off going the Argentine route, which freed itself from debt burden and destructive policies."

The Argentine economy has been buoyed by a sharp and sustained demand from China and elsewhere for soy and other Argentine products, with economic growth averaging 7.6 percent over the last eight years. Since assuming office in 2007, Fernandez has taken surpluses to fund cash transfers to poor families, energy subsidies and other social programmes.

But economists have been quick to point out the discrepancies in inflation figures, with estimates showing that inflation is running at 24 percent, more than double the 9.9 percent reported by state officials in September.

The country also has not allowed the International Monetary Fund to review its finances, as it does for every other member country, since 2006. It’s also failed to reach an accord with the Paris Club group of creditor nations to settle claims on $9 billion in defaulted bonds.


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