Furthermore, strong drought affected the foreign margin (ph) in the country in the recent months and they imply lower commodity outputs and somehow lower (inaudible) exports for 2012, hence affecting the country’s trade balance. Subscriber consumption remains strong, although higher real interest rates and the reduction in public subsidies that could limit the performance of that consumption. (Inaudible) are starting from lower levels than last year as inflation ended lower than it was expected for the year at the beginning of 2011. Nonetheless, the reduction in energy and transit subsidies that may result in higher tariff and fees could add pressure on pricing in the economy.National fiscal surplus suffered an important deterioration due to a strong increase in public spending, although as mentioned before, the government tends to tackle the problem by turning subsidies. Imports increased by 31% year-on-year in 2011. But in the last quarter strong deceleration was evidenced partly due to the increasing restrictions on imports. Furthermore, capital outflows decelerated in the last month of the year. Thanks to higher interest rates and the effects of regulations in the FX market that includes a preapproval of the tax office in certain treasury transaction.
Telecom Argentina's CEO Discusses Q4 2011 Results - Earnings Call Transcript
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