The Struggle Must Go On

Mar 1, 2004

Argentina is booming again after years of decline. But it needs to attract foreign investment to keep the economy growing. And that will require a deal with bondholders and the International Monetary Fund.

Staking out the Casa Rosada.

Argentina has not seen a summer like this in years. It's as if all the last few years of economic crisis and political chaos were just a bad dream. Buenos Aires is sweltering in a heat wave. Fashionable new restaurants and chic boutiques are doing a roaring trade. New auto registrations doubled in January. Over in Punta del Este, the Uruguayan beach resort that caters to wealthy Argentines, hotels are packed and the casinos are making a fortune. In January alone, the town's casinos pulled in $100 million in bets.

The economy grew 8.4% last year and should rise another 5%-6% this year. The last time Argentina's economy grew was in 1997. Excellent international soy prices and recovery in consumer confidence at home have powered the economy along.

No Way to Pay
President Néstor Kirchner, elected last year with only 22% of votes,...

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