MercoPress. South Atlantic News Agency

Chile, fifth largest economy in the region

Chile is poised to become Latinamerica's fifth largest economy, ahead of Colombia according to estimates from the International Monetary Fund. Chile GDP is forecasted to reach 140.3 billion US dollars and Colombia's 129.3 billion.

Head of the region with a GDP of 966.8 billion US dollars is Brazil followed by Mexico with 811.3 billion.

In third place, but quite distant comes Argentina with a 219.6 billion GDP followed by oil rich Venezuela with 164.4 billion.

Chile's performance this year, according to experts, can be explained by a fastest growing economy, 5.2% against 4.8% for Colombia, plus better trade terms for Chilean exports.

While copper has increased 64% so far this year, Colombian coffee which has a good start in 2006 has begun to decline slightly. This is particularly significant since copper and molybdenum make up half of Chile's exports.

A non incidental factor is the exchange rate because both Chile and Colombia are following a strong domestic currency policy, with the Chilean and Colombian peso appreciating 11.3% against the US dollar in the first eight months of 2006.

As far as income per capita, Chile figures top of the list with 8.569 US dollars, ahead of Mexico, 7.593, but if purchasing power parity is taken into consideration Argentina leads.

Chile's 8.569 current US dollars become 12.737 dollars in purchasing power. However Argentina with a nominal per capita 5.741 US dollars actually has a purchasing power equivalent to 14.838 US dollars.

The IMF chart shows Brazil with a GDP of 966.8 billion and per capita income of 5.176 US dollars; Mexico, 811.3 b and 7.593.5; Argentina, 219.7 b and 5.745; Venezuela, 164.4 b and 6.098; Chile, 140.4 b and 8.569; Colombia, 129.4 b and 2.763; Peru, 89.3 b and 3.150; Ecuador, 41.3 b and 3.081; Uruguay, 18.6 b and 5.809; Bolivia, 10.4 b and 1.075 and Paraguay, 8.6 b and 1.459 US dollars