Economic activity in Chile expanded 4.7% in December and 5.5% in the twelve months

Friday, February 8th 2013 - 05:13 UTC

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The economy was boosted by domestic demand

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.

Categories: Economy, Latin America.

Tags: Chile, Chilean economy, Chilean Peso.

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Ayayay
Wow, keep it green and you're winning!
Feb 08th, 2013 - 05:53 am 0
yankeeboy
Just think what they could do if they took Mendoza back!!
Feb 08th, 2013 - 01:04 pm 0
Condorito
Very impressive growth and more than most predicted at the start of 2012. The article doesn't mention that the growth was accompanied by a similar increase in wages (6.3%) with the largest percentage increases at the poor end of the scale (poorest 25% saw a 25% increase in 2012).

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.
Feb 08th, 2013 - 01:08 pm 0

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