Argentina-Forecasts down for 2009.

ARGENTINA

GROWTH FORECASTS DOWN FOR 2009

According to JP Morgan, who until 2007, were majority shareholders in Armour Swift, Argentina’s largest beef packing company, Argentina’s political turbulence ,exacerbated by the recent farmers dispute taking on a new life again, along with high inflation and the departure of the economy minister, is likely to weigh on the countries growth in 2009.

The bank has revised its forecasts of growth for 2009 down from 4pc to 2 pc, due to agricultural issues and high inflation.

According to Vladimar Werning, JP Morgan’s, executive director for emerging economies "We think that the risk of a hard landing in this scenario has increased".

Argentine farmers have clashed with the government over the last year, regarding taxes for exports.

According to JP Morgan the Argentine government is not willing to change fiscal policies anytime soon.

Standard & Poor have also revised the outlook on the country’s credit rating from stable to negative.

Meanwhile on Brazil, Billionaire Media Baron Sam Zell, told the Milken Institute Global Conference "Brazil has the chance in 30 years from now, to be a bigger economic power than China"