Recession-Hit Argentina Predicts 2.8% Growth in 2015

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The Argentine economy will grow 2.8 percent in 2015, the government said Monday, despite the recession gripping the country.

In its annual budget proposal to Congress, President Cristina Kirchner's government forecast the country would return to growth next year and slash annual inflation to 15.6 percent.

Economic analysts are forecasting the economy will shrink at least two percent this year.

Annual inflation has topped 20 percent since 2007.

The South American country has seen sluggish consumption and industrial output in recent months.

Its economic woes have been exacerbated by its $1.3-billion debt dispute with two hedge funds that won a U.S. court ruling blocking the country from servicing its debt without paying them.

The row forced Argentina into its second debt default in 13 years in July.