Argentina's New Economy Minister Vows Continuity

    BUENOS AIRES (Dow Jones)--Argentina's new economy minister, Hernan Lorenzino, will hew to the same track laid by his predecessor, vice president Amado Boudou, focusing on stoking economic growth and spending heavily on social programs, Lorenzino said Saturday.

    "It's very simple and can be summed up in three phrases--growth, employment and social inclusion," Lorenzino said at a press conference to introduce his economic team. Earlier in the day, President Cristina Kirchner was sworn in for her second term after winning re-election by a landslide.

    Lorenzino said that his focus will be bringing down the country's debt, creating jobs, and social spending while maintaining solid trade and primary surpluses.

    Adrian Cosentino will move up from the number two spot to run the finance secretariat in place of Lorenzino, while Axel Kicillof was named as the new secretary of Political Economy. Kicilloff is a leading light at in the La Campora political faction headed up by Kirchner's son Maximo.

    Beatriz Paglieri, who ran the government's highly criticized statistics agency Indec, will head the newly created external commerce secretariat while the powerful domestic commerce secretary, Guillermo Moreno will remain at his post. Paglieri is a protege of Moreno, who is widely feared by the local business community for his arm-twisting to control prices and intervention in currency exchange houses to stem capital flight. Economists say that inflation is running at over double the 10% rate reported by the government and accuse Indec of doctoring the data.

    Lorenzino is widely respected and seen as a market-friendly pick, but it is unclear how much sway he will have during Kirchner's second term. "It's the president who sets the path to follow," he said Saturday.

    Lorenzino has played a key role in talks between Argentina and the Paris Club of lending nations to repay close to $8 billion that Argentina still owes the countries since its massive default in 2001. Those talks are ongoing, but Lorenzino is seen as a proponent of clearing up the remnants of the default and steering the country back toward international credit markets.

    The new economy minister will preside over government efforts to cut public spending on energy subsidies and rein in rampant inflation. He also faces a cooling economy following two years of sizzling growth.

    The economy expanded by more than 9% in 2010 and is expected to match that blistering pace this year. However, the economy ministry has forecast a more-moderate 5.1% expansion in its 2012 budget bill.

    -By Shane Romig and Alberto Messer, Dow Jones Newswires; 54-11-4103-6738;