WHAT: Argentina tax revenue in May
WHEN: Wednesday, June 1
REUTERS FORECAST: 51.50 billion pesos ($11.87 billion), up 31 percent year-on-year, according to the median forecast. Seven analysts were surveyed, with estimates ranging from 49.60 billion pesos to 52.60 billion pesos.
FACTORS TO WATCH: Argentina's tax revenue is seen surging again year-on-year to hit a record high in May, buoyed by strong economic growth, solid consumer spending, corporate and personal income taxes and high inflation.
Argentina, Latin America's No. 3 economy, grew 9.2 percent in 2010, one of the region's fastest rates. Analysts predict economic growth will slow to between 6 percent and 8 percent this year.
The government's tax-take is usually biggest in May, when companies face a deadline to pay corporate income tax.
'We're expecting May's tax-take to come in at around 50 billion pesos, boosted by income tax revenue,' said Fausto Spotorno, an economist at Orlando J. Ferreres & Associates consulting firm.
Analysts also expect higher revenue from social security contributions, trade levies and the value-added tax.
The state tax-take has grown by between 30 percent and 40 percent year-on-year in the last year, helping the government keep up high public spending and healthy primary budget surpluses five months before a presidential election.
Annual inflation, forecast privately at above 20 percent, is also boosting government revenue, especially from sales tax receipts.
Argentina is one of the world's top grains exporters and income from tax levies on grains exports is expected to keep rising due to high global commodities prices.
'In the second quarter tax revenue will be higher due to export levies,' said Inaki Alvarez, an analyst at Estudio Bein & Associates consulting group.
MARKET IMPACT: Swiftly rising tax revenue is positive for Argentina's creditors, although state spending is also growing at a fast pace. Primary spending growth sped to 35 percent in April year-on-year from 33 percent in the first quarter.
Public spending is seen increasing in the run-up to October's presidential vote, in which President Cristina Fernandez is widely expected to run for reelection.
Tax revenue data is less relevant than it used to be since Argentina is using the central bank's foreign reserves to pay its debts.
($1=4.34 Argentine pesos)
LINKS: Argentina's bureau of statistics website: http://www.indec.gov.ar/
For historical Argentine statistical data in Spanish, please see pages through
To see a calendar of Argentine economic indicators please click on or type in ECONAR on a quote page and press enter.
For separate pages detailing Argentine analysts' economic forecasts, click on:
(Reporting by Jorge Otaola; Additional reporting by Walter Bianchi and Juliana Castilla; Writing by Luis Andres Henao; Editing by Leslie Adler) Keywords: ARGENTINA ECONOMY/TAX (luis.a.henao@thomsonreuters.com; +54 11 4318-0655; Reuters Messaging: luis.a.henao.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
WHEN: Wednesday, June 1
REUTERS FORECAST: 51.50 billion pesos ($11.87 billion), up 31 percent year-on-year, according to the median forecast. Seven analysts were surveyed, with estimates ranging from 49.60 billion pesos to 52.60 billion pesos.
FACTORS TO WATCH: Argentina's tax revenue is seen surging again year-on-year to hit a record high in May, buoyed by strong economic growth, solid consumer spending, corporate and personal income taxes and high inflation.
Argentina, Latin America's No. 3 economy, grew 9.2 percent in 2010, one of the region's fastest rates. Analysts predict economic growth will slow to between 6 percent and 8 percent this year.
The government's tax-take is usually biggest in May, when companies face a deadline to pay corporate income tax.
'We're expecting May's tax-take to come in at around 50 billion pesos, boosted by income tax revenue,' said Fausto Spotorno, an economist at Orlando J. Ferreres & Associates consulting firm.
Analysts also expect higher revenue from social security contributions, trade levies and the value-added tax.
The state tax-take has grown by between 30 percent and 40 percent year-on-year in the last year, helping the government keep up high public spending and healthy primary budget surpluses five months before a presidential election.
Annual inflation, forecast privately at above 20 percent, is also boosting government revenue, especially from sales tax receipts.
Argentina is one of the world's top grains exporters and income from tax levies on grains exports is expected to keep rising due to high global commodities prices.
'In the second quarter tax revenue will be higher due to export levies,' said Inaki Alvarez, an analyst at Estudio Bein & Associates consulting group.
MARKET IMPACT: Swiftly rising tax revenue is positive for Argentina's creditors, although state spending is also growing at a fast pace. Primary spending growth sped to 35 percent in April year-on-year from 33 percent in the first quarter.
Public spending is seen increasing in the run-up to October's presidential vote, in which President Cristina Fernandez is widely expected to run for reelection.
Tax revenue data is less relevant than it used to be since Argentina is using the central bank's foreign reserves to pay its debts.
($1=4.34 Argentine pesos)
LINKS: Argentina's bureau of statistics website: http://www.indec.gov.ar/
For historical Argentine statistical data in Spanish, please see pages through
To see a calendar of Argentine economic indicators please click on or type in ECONAR on a quote page and press enter.
For separate pages detailing Argentine analysts' economic forecasts, click on:
(Reporting by Jorge Otaola; Additional reporting by Walter Bianchi and Juliana Castilla; Writing by Luis Andres Henao; Editing by Leslie Adler) Keywords: ARGENTINA ECONOMY/TAX (luis.a.henao@thomsonreuters.com; +54 11 4318-0655; Reuters Messaging: luis.a.henao.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.