Chile government spending rate below the economy’s performance for second year running
Government expenditure in Chile expanded an estimated 5% last year while the economy grew 5.5%, making it the second consecutive year in which the economy outperforms outlays.
“These are preliminary data but it all indicates that for a second year running expenditure was below growth rate, which is quite an achievement in this turbulent world”, said Finance minister Felipe Larrain.
The minister added that between 2010 and 2012 the Chilean economy expanded at a rate of 5.9% which is one percentage point above government expenditure in that period.
Larrain said that he released the data, which could suffer some very minor adjustments to contain some market analysts’ estimates indicating that government expenditure last year expanded 7%, “which is totally contrary to our data and what can be easily perceived”.
Nevertheless “growth in government spending during 2012 was in the framework of a more stable context than in previous years”, said Larrain.
“In 2012 we were able to implement government spending in a softer manner, with no major alterations” insisted the Chilean minister who said that advancing “this valuable data will enable to contain inflationary pressures, have lower interest rates and reduce the current account deficit, among other benefits.
The Chilean economy since the return of democracy in 1990 has become a model case for developing countries with sustained growth, balanced budgets, foreign trade surplus, attracting massive investments particularly in the mining sector and excellent macroeconomic indexes.
However there is still much to achieve in education, health, social services as was experienced during the recent students’ protests and demonstrations, lasting over 18 months and with ample public opinion support.
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That's right, it's all good.
Nice try there mercopress.
ProArgie has never been to Chile and seems to think that we are still in the 1970s. For him/her part of being pro-Argie seems to include bitterness at our success.
(S)he can’t ignore that in the last 20 years we have surpassed Argentina on every economic metric. We have also left them behind in terms of life expectancy (we are now above Denmark), quality of life, lower crime, infant mortality, better tertiary education, lower corruption. We have recently just edged past Argentina on the Human Development Index.
Add to all that, that our military could crush them in 5 minutes it is no surprise that an envious person like proArgie would react that way, but it is still disappointing that such people can’t be happy for us and see that we are showing them the way forward. At least they still have football supremacy to cheer them.
ProArgie,
The educational reform protests stopped months ago when the government agreed to increase the education spend. The right to protest is important in a free society.
As for:
“Despite the protesting in the streets by outcasts due to lack of services”
I have no idea what you are referring to.
Totally agree! Chile is also almost considered a developed country. Indeed it is exceeding even some of the developed countries in Southern Europe.
Argentina, however is still a developing country and actually going backwards in some measures.
It's funny but once it was Argentina that was equal to and compared to Australia. In the future it will be Chile that will be.
Not that it would be important, but seems even that bastion is falling appart, as seen 2 days ago in the sub20 south american championship in Argentina.
How ironic, it was Argentina vs Chile played in the “Estadio Malvinas”.
Result: Chile with 2 men less on the field scored and beat Argentina 1:0 @ their own home.
www.youtube.com/watch?v=wx2ffBizpLQ
It seems I was tempting fate with that comment.
I watched the match - seems we have some talent in the up coming generation. Problem is, that when they do well the farandula makes them think they are more than what they really are. Lets hope they continue on the right track.
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