Tuesday, January 8th 2013 - 06:58 UTC

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.

Finance minister Felipe Larrain: the economy expanded 5.9% between 2010 and 2012

“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.
 

8 comments Feed

Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Comments should refer to article. Thank you.

1 Condorito (#) Jan 08th, 2013 - 03:04 pm Report abuse
“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.”

That's right, it's all good.
2 ProRG_American (#) Jan 08th, 2013 - 06:26 pm Report abuse
Yes, the people are very happy. Despite the protesting in the streets by outcasts due to lack of services and a few unrepresented Mapuche Natives taking the law into their own hads out of frustration.
Nice try there mercopress.
3 ManRod (#) Jan 08th, 2013 - 09:30 pm Report abuse
ProRG, considering the Argentine case, where people go nuts with mass-assaults of stores like in Neuquen and other parts of the country, higher unemployment, higher poverty rates, worse education results and higher expenditures than income like dictated by Cristina, seems like spending more money doesn't really help the root cause, huh?
4 Condorito (#) Jan 09th, 2013 - 05:04 pm Report abuse
ManRod,
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.
5 Anglotino (#) Jan 10th, 2013 - 10:14 am Report abuse
@4 Condorito

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.
6 ManRod (#) Jan 13th, 2013 - 10:55 am Report abuse
Condorito: “At least they still have football supremacy to cheer them.”

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
7 Condorito (#) Jan 14th, 2013 - 01:29 pm Report abuse
ManRod:
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.
8 ManRod (#) Jan 14th, 2013 - 03:57 pm Report abuse
indeed, they lose discipline and “se le suben los humos” too fast. This is a well known problem in our soccer players. Also the new ones seem a bit “overenthusiastic” in their game style, considering the red cards. Badddddd....

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!

Advertisement

Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!

Advertisement