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Argentina's economy min upbeat on economy: report

LONDON: Argentine Economy Minister Roberto Lavagna is relatively upbeat about the state of the debt-ridden country's economy, the Financial Times reported on Monday.

"This could be a very quiet transition (to the next government), and all the economic variables are pointed in the right direction," said Lavagna, according to the FT.

Earlier this month, Lavagna forecast 2003 inflation of 14 percent, sharply below the 22 percent forecast in the country's budget for the year.

Inflation soared to 41 percent in 2002 as a deep four-year recession culminated in a world-record debt default and steep currency devaluation, but this has since slowed dramatically.

Lavagna added that relations between the government and the International Monetary Fund were improving, and that he was hoping for a speedy and more durable IMF agreement once the next government takes office.

"It has to be an economic programme that matches the capacity to repay with economic growth. Without growth, there is no capacity to repay," he said.-Reuters