Industrial Growth Slows In 1Q2005

According to preliminary data from the Economic Ministry, the industrial growth rate slowed to 7% in 1Q05, compared to 18.8% for the same period last year. Concorde Capital: Previously, the Ministry forecast industrial growth would increase at an 8% rate in 1Q. The sharp reduction this quarter is more than two times lower than the level last year, and forces us to question the government?s desire to keep industrial growth rates at their 2004-levels and achieve its plans for 12% industrial growth rate in 2005. In 2004, industry grew 12.5%. We maintain our 9.5% industrial growth forecast for this year.