UPDATE 1-Argentine president says economy will grow in 2009

Mon May 4, 2009 11:51pm BST
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(Updates with additional comment from president)

BUENOS AIRES, May 4 (Reuters) - Argentina's economy will grow again in 2009, President Cristina Fernandez said on Monday, refuting private forecasts for a contraction.

"We will grow again this year, no doubt about it," Fernandez said in a live televised speech, admitting that growth rates would be lower because of a global downturn.

Latin America's third-biggest economy grew by at least 7.0 percent in each of the last six years ARECI12, but the global recession combined with local political uncertainties sparked a sharp slowdown starting in the fourth quarter of 2008.

Many economists predict the economy will shrink this year, but Fernandez dismissed such forecasts.

"We paid no attention to those people who for six years said (our policies) were wrong ... and we had six years of sustained growth," the center-left leader said.

"I get chills down my spine just thinking, if we had cooled the economy in 2007, as some said we should, or in 2008, what would Argentina be facing today?" Fernandez said.

Fernandez took office in December 2007, succeeding her husband, former President Nestor Kirchner.

She has followed in his footsteps in terms of economic policy but found herself embroiled in a months-long battle with the powerful farm sector over export taxes on soy.  Continued...

 
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