MercoPress. South Atlantic News Agency

Magallanes economy recovers dynamism expands 4.7% in Q3

Methanex complex in Pta. Arenas

Magallanes Region in the extreme south of Chile had a positive performance of 4.7% in the third quarter of the year breaking with a sliding tendency since the huge methanol complex close to Punta Arenas was forced to cut production because of insufficient supply of Argentine natural gas.

Mining (particularly coal extraction), transport, storage, communications and construction were the most dynamic sectors, according to Gabriel Parada head of the regional Chilean Statistics Office (INE), who made the announcement in Punta Arenas. Even more encouraging the economic activity index would have been 4.8% if methanol production, the region's main industry, had been excluded. The only bleak stop in the quarterly report was fisheries which saw its activity contract as a direct consequence of lesser extraction of molluscs, crustacean and other sea produce. Javier Solis Economy ministry representative for Magallanes said that the latest growth rate reconciles the overall positive performance of the region which "for a couple of years now has the lowest unemployment indexes of Chile in the range of 2%", helped by the strong performance of construction both private and public works. Magallanes activity figures had been declining since the Methanex complex was forced to cut down production, given the unpredictability of Argentine natural gas supply. "It was a dramatic situation but current indexes shows that we're back at the equilibrium point of the same quarter a year ago, when the beginning of the conflictive situation", underlined Solis. Other data are evidence of the good health of the regional economy and investors confidence added Solis, pointing out to the fact that third quarter exports totalled 207 million US dollars which represent a 43.8% jump over the same quarter a year ago.