Friday, December 14th 2012 - 20:43 UTC

IMF praises Chile as one of the most stable and prosperous nations in the region

IMF Managing Director Christine Lagarde described Chile as one the most stable and prosperous nations in South America which has enjoyed robust growth over the last decade, but also warned it remains exposed to shifts in commodity prices.

Christine Lagarde with President Piñera

“Chile’s strong economic policy framework, including a fiscal rule, inflation targeting, and exchange rate flexibility has underpinned the economy’s resilience in the face of the global financial crisis and the devastating earthquake in February 2010”, said the IMF head.

Growth momentum is expected to remain strong and risks relate mainly to the uncertain global environment, she added.

But Chile remains exposed to shifts in commodity prices and deterioration in global financial market sentiment, although its ample policy buffers would provide protection, cautioned Ms Lagarde.

On the upside, continued strong domestic demand can put upward pressure on inflation and lead to further widening of the current account deficit.

“In the medium term Chile should aim at achieving higher productivity growth and diversifying the economy further with a view to sustaining high economic growth rates in the future. In this context, reforms to improve the quality of education and training enhance labour market efficiency, and boost investment in the energy sector will be critical”.

Finally the IMF chief her visit to Chile has been very productive in meetings with President Sebastian Piñera, Finance Minister Felipe Larraín, and Central Bank President Rodrigo Vergara.

“During my stay here, I had the opportunity to participate in the meeting of the Community of Latin American and Caribbean States Finance Ministers, where we exchanged views on the challenges and opportunities for the region. I also met students and faculty in a Town hall event at the Universidad de Chile and we discussed issues facing the young people of the region.

 

16 comments Feed

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1 ElaineB (#) Dec 14th, 2012 - 08:50 pm Report abuse
Yes, Chile has done a great job.
2 slattzzz (#) Dec 14th, 2012 - 08:59 pm Report abuse
another kick in the crutch for TMBOA
3 Condorito (#) Dec 14th, 2012 - 09:02 pm Report abuse
If we can't diversify the economy before the steam runs out on the mining boom, then much of the good work will be undone.
4 ChrisR (#) Dec 14th, 2012 - 09:12 pm Report abuse
Just need to educate the 'students' to behave reasonably. Their actions gave an unrealistic view to the outside world of just how far Chile is moving into the real world. They are far better than that.

First class, well done Chile.
5 ProRG_American (#) Dec 14th, 2012 - 09:31 pm Report abuse
Congratulations Chile. Given that theis article is intended to be anti-Argentine I will say this.
Now, the fact is that Chile remains overly dependent on mining (Condorito (#) is 100% right on) and fruit exports. It remains largely un industrialized and it's people have are quite unhappy with it's human development and services. Reason being why so many chileans see the medical services and educational opportunities in it's neighbor to the east of the Andes. There are about 200,000 Chileans living in Argentina, without counting the transitory patients, students, tourists and business people that visit Argentina each year.
I have had more that one Chilean tell me that they would like to be like the Argentines. Meaning, the lifestyle, and services that they enjoy.
6 Pirate Love (#) Dec 14th, 2012 - 09:59 pm Report abuse
“IMF praises Chile as one of the most stable and prosperous nations in the region”
Outstanding, Well done chile!

I sense a slight wiff of pungent sour grapes in the air oozing from the east of the andes, as usual! and they might even try to take away the gloss on this good news for the chilean people with their envious tripe!
7 Pete Bog (#) Dec 14th, 2012 - 10:09 pm Report abuse
But Argentina are too proud to emulate Chile, they prefer the Chav instead, and the economics of debt and self destruction.
8 Britworker (#) Dec 14th, 2012 - 10:34 pm Report abuse
Will Ms Lagarde be visiting Argentina to tell them what a great job they are doing too?
9 Pirate Love (#) Dec 14th, 2012 - 10:42 pm Report abuse
@8 only to drop the RED CARD off! then onto uruguay to take cruise to Falklands for talks with the F.I. govt apparently, just what i heard :)
10 toooldtodieyoung (#) Dec 15th, 2012 - 01:47 am Report abuse
Poor old Argentina!!! Good news to the left, Good news to the right and they are stuck in the middle with.........KFC!!!

6 Pirate Love

What do you mean?? Like ProRG_American is trying to do at 5???
11 Ernie4001 (#) Dec 15th, 2012 - 04:07 am Report abuse
@ 5. Some of the points you say are real but not in the way you believe. That´s why we are working hard to improve conditions for everybody including better access to health and education. Those 200.000 that you mention are part of the old emigration (70´s and 80`s) so is part of an old argentinian speech. Has been long ago since we don´t send people overseas as Argentina, Peru and Ecuador do. In the other hand we are receiving inmigrants from Peru, Argentina, Colombia and Haiti.
12 Nostrolldamus The 2nd (#) Dec 15th, 2012 - 04:22 am Report abuse
@11

Actually it would be 500k but its true, Chile is no longer a significant source of inmigrants. But you are delusional to lump Argentina with Peru or Ecuador. We are still the most inmigrated nation in Latin America by a good margin and Argentines don't leave for anywhere in the world in any big numbers, and any that do leave is offset by those returning from Europe, and the USA.

And few Argentines go to Chile, there was a spike in the 2001 with some 30k going there, but then after 2005 it pretty much ended. Now its probably even steven.
13 The Chilean perspective (#) Dec 15th, 2012 - 05:59 am Report abuse
She nailed it right here, pay attention 'cause if we don't we can lose this thing.
I'm glad that we are generally moving in that direction and diversifying the economy, fixing our weak education and training system, improving productivity (inflation rate of
14 TipsyThink (#) Dec 15th, 2012 - 10:01 am Report abuse
IMF praises Chile....................

but IMF data does not same thing

foreign debt ,in 2010 ...80 $ billions
foreign debt ,in 2012 ... 105 $ billions

current account as 5 GDP ...in 2010 ..+1,5%GDP
current account as GDP ... in 2012.. - 2,7 %GDP

foreign investment balance as % GDP ... in 2010 ..- 10,7 %GDP
foreign investment balance as %GDP ...in 2012 ... - 14,4 % GDP

free to write/publish fiction articles in internet/media....
who believe.. !
15 Conqueror (#) Dec 15th, 2012 - 11:09 am Report abuse
@5 You've had “more that one Chilean tell me that they would like to be like the Argentines.” Two then. But then, there are bad apples in every barrel. Look at the departed and unmissed “Guzz”. The relatively quiet P-H now that everybody knows where he lives. The dysfunctional “Nosy the Damned”.
@12 “inmigrated”?
@14 Pissed again?
16 Brit Bob (#) Dec 16th, 2012 - 08:06 pm Report abuse
@12

From the Guardian 16th December 12

'Argentina faces IMF penalties over failure to meet inflation deadline. Sanctions such as exclusion from G20 could be imposed as country's inflation rate appears at odds with independent assesments.'

and

'Tomorrow we'll find out if Argentina is getting kicked out of the IMF. Tomorrow the IMF will release a report on Argentina's inflation that could turn the country into a pariah of the global economic communities.'

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