Economic activity in Chile expanded 4.7% in December and 5.5% in the twelve months
Economic activity in Chile grew 4.7% in December from the year earlier on gains in the service and retail industries, and ended the twelve months of 2012 with an expansion of 5.5% over the previous year according to Central bank data.
Growth was driven by investment and domestic demand, which pushed up retail sales and imports even as industrial production stagnated and export growth weakened.
“The recent pattern of growth driven by domestic demand had resulted in a widening of the current account deficit which, as previously noted, if it continued and expanded, could become a factor of greater external vulnerability,” the central bank board said in minutes published on February 1 from their January meeting on interest rates.
The stats released this week refer to the Monthly Economic Activity Index, IMACEC, which covers over 91% of goods and services included in the GDP.
Chile’s GDP expanded 5.7% in the third quarter from the previous year, led by a 13% increase in investment and 6.4% gain in private consumption, according to central bank data.
The current account deficit widened to 7.4% of GDP in the third quarter from 4.9% in the year-ago period. Imports grew 2.5% in the third quarter while exports contracted as Chileans stepped up purchases of foreign-made durable and consumer goods, the bank said.
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The article states that private consumption increased 6.4% - I wonder how much of that was due to 2 million Argies doing there shopping over here.
No room for complacency - with the global economy growing meekly we might have to tighten the belt a little.
www.facebook.com/HonourRestored
What a luxury Gvt. we have......!!!! Hope it could continous its works for a long time ahead.....A world of difference with the 20 years before with leftist Gvt., even now we have had to deal with a world's very weak economy cycle.....
If it don't continous here because the stupidity wins the election this year, they can help others countries that wishes to growth fast and stable like us this last 4 years.....while we will loose all we have achieved so far.....
This year we must work better and with more efficiency yet and be carefuly with foreing economy development...
This is going to continue for Chile-& Peru! Supposedly there's a new high energy that's settled in the Andes.
such stupid comments!
Yes, it is very encouraging.
There is still a lot of inequality in Chile, but we are going in the right direction.
@Sergio
I like a lot of what this government has achieved too. I hope the tight fiscal control continues who ever we have as the next government, but it will be increasingly difficult as people's expectations of what the government should give them increase.
Saludos.
Keep up the good work Chile. But, address some of those problems nobody wants to address and you'll be good to go. Otherwise, it will all be for naught.
When Pinochet started the social housing programme the Gvt. incomes were just a smallness of what now are and the people living in “tomas” were too much, so the only possibility to bring them a new house was through those small houses with a proyected enlargement......
Anyway, the contry we enjoy now is much, much better than it was 3 years ago....
The segment you refer to is not a substantial percentage of the population. 15% of the population live in poverty according to the UN and that number has been falling almost every year for the last 20 years.
Chile is not as polarized as La Dehesa and the poblas. The vast majority of us live between these extremes. As this article says, the impact of the slowdown of the global economy has been offset by domestic consumption. That consumption is being driven by everyday families whose income has risen sharply.
In industries like construction, wages have risen dramatically and there is still a labor shortage. Anyone who wants a job can find one. It is as you rightly say a lack of ambition in some sectors that needs to be dealt with and that doesn't necessarily need money throwing at it.
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