BUENOS AIRES (Dow Jones)--Total investment in Argentina showed further improvements in May, led by investments in machinery and equipment, research firm Orlando J. Ferreres & Asociados said Wednesday. "Investment levels still haven't recovered those levels reached in the months before the 2009 recession and would seem to be stabilizing at around 21% [of gross domestic product]," OJF said in its monthly report.
Most economists say that investment levels remain largely reliant on government spending, as private-sector investment has dried up, given political and economic uncertainties.
OFJ said it estimated that investment in Argentina totaled $6.19 billion in May, up 21% from a year ago. That is equivalent to 20.8% of GDP, without adjusting for seasonal variations, OJF said.
Construction was up 4.5%, the eight consecutive month of growth. Purchases of locally made equipment was up 27.8%, while imports were up 78.9%, OJF said.
-By Matthew Cowley, Dow Jones Newswires; +54 11 4103 6740; This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Source: http://online.wsj.com/article/BT-CO-20100623-710967.html
