Chile’s Economy Grew Faster-Than-Forecast 5.3% in December
Chile’s economy grew a faster-than- expected 5.3 percent in December from the previous year on gains in the retail, communications and mining industries, the central bank said.
The economy expanded 1.3 percent from the previous month on a seasonally adjusted basis, the bank said in a statement posted on its website today. The median estimate of 15 economists surveyed by Bloomberg was for annual growth of 3.9 percent in December.
December’s figure brings annual growth in the fourth quarter to 4.2 percent, down from 4.8 percent in the previous three months, according to calculations made by Bloomberg based on central bank data. Growth in the world’s largest copper producer will slow this year on weak export expansion, while retail sales growth remains robust, central bank President Rodrigo Vergara said last week.
“Our economy is moving gradually toward less expansive rates even as spending data still show major growth,” he said Jan. 31. “Clearly there are differences between sectors. In some industrial areas, especially those dedicated to exports, it’s noticeable there’s less vigor.”
Copper for three-month delivery declined 0.7 percent to $8,502 a metric ton at 11:52 a.m. on the London Metal Exchange. Prices increased 13 percent in the four weeks through last week. Copper averaged $8,826 a metric ton last year and $7,557.94 a ton in 2010.
Chile’s peso fell 0.3 percent to 480.50 per U.S. dollar at 8:34 a.m. Santiago time, according to prices compiled by Datatec.
Growth Outlook
Industrial production grew 5.4 percent last year, about half as fast as retail sales, according to the National Statistics Institute. Retail revenue growth will decelerate to about 5 percent to 6 percent in 2012, the Chilean Chamber of Commerce, known as CNC, said in a Jan. 26 report.
Chile’s economy, which is forecast to expand as much as 4.75 percent this year, may slow more than estimated if the European sovereign-debt crisis deteriorates, Vergara said on Jan. 31.
“Major risks persist,” he said during a Senate session on the global economic slowdown. “Among these risks are the possibility that new episodes of international financial volatility end up affecting the expectations of players, global demand and international credit.”
To contact the reporter on this story: Randall Woods in Santiago at rwoods13@bloomberg.net.
To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net.
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