Fun while it lasted

30 June 2009 By Martin Hutchinson

President Fernández’ moderate defeat in midterm elections may force policy compromise. So may reality with wheat planting down 30%, her government s strategy of heavily taxing farmers and exporters may finally hit the economic buffers. Still, Argentina has had a great run.

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The Argentine government of Cristina Fernández de Kirchner suffered a setback in midterm elections held on June 28. Of the 257 seats in the Lower House, a total of 99 will be progovernment, 131 held by the opposition, and 27 independent. The 72seat Senate is split 3636 between government and opposition. Néstor Kirchner was defeated in Buenos Aires province and the Victory Front was defeated in his home province of Santa Cruz. The City of Buenos Aires was won by independent Peronists under Mauricio Macri.

Argentina has a population of 41m, growing at 1.1% annually, and a GDP of $339bn in 2008, $14,200 per capita on a purchasing power parity basis. Its GDP is expected by the Economist panel to shrink 3.5% in 2009 and grow 0.5% in 2010.

Argentine farmers are expected by the Buenos Aires grain exchange to sow 2.9m hectares with wheat, down 30% from last season and the smallest area since records began more than 100 years ago.

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