Search This Blog

Thursday, March 22, 2012

Chile's GDP Expanded 6% in 2011

SANTIAGO, Chile—Chile's economy grew at a robust pace last year, picking up speed in the fourth quarter on resilient domestic demand, the central bank reported Monday.


The country's gross domestic product gained 4.5% on the year in the fourth quarter, bringing the increase for the full year to 6%.

Fourth-quarter GDP rose 2% from the third quarter, according to the central bank. It also rose 8.2% on an annualized basis in the fourth quarter.

On a seasonally adjusted basis, GDP grew by 5.9% in 2011 compared with the previous year.

The bank revised GDP data for the second and third quarters of 2011, reporting a revised 3.7% year-on-year increase for July-September, versus a previously reported 4.8%, while second-quarter GDP growth was revised to a 6.3% on-year increase, from a previously reported 6.6% gain.

It also reported that in the third quarter of 2011, GDP grew 0.3% from the previous quarter and that for the second quarter of last year, it grew 1.0% from the first quarter.

"The GDP was fueled by all economic sectors, with the exception of the mining sector, which posted a contraction," the central bank said.

The bank noted that retail commerce, construction and personal services were the sectors that contributed significantly to last year's economic growth.

Domestic demand grew 9.4% on the year in 2011, fueled by an 8.8% on-year increase in household consumption of goods and services and a 3.9% gain in government demand and to a lesser degree by investment, according to the bank.

Gross fixed capital formation, a measure of investment, grew 17.6% on the year due to a 12.7% increase in construction spending and a 25.8% jump in spending on machinery and equipment, the bank said.

The mining sector, which has traditionally fueled growth in Chile and which represents about 16% of GDP according to the central bank, retreated 4.8% on the year in 2011, due to lower copper production caused by falling ore grades and labor strikes.

In addition, Chile posted a current-account deficit of $3.22 billion for the year, equivalent to 1.3% of GDP, the bank said.

The GDP data released Monday incorporated revisions to the methodology the bank uses to calculate GDP, as it adopted new international standards.

The central bank changed the base year for GDP, introducing a chain index base rather than a fixed base, and modified the weightings of different economic sectors, among other changes that follow standards used by other countries belonging to the Organization for Economic Cooperation and Development, or OECD.

"This methodology allows us to get closer to the [economic] reality and not be tied down to the prices of one particular year," said Ricardo Vicuna, who heads the central bank's statistics division.

Using this new methodology, the central bank revised GDP going back to 2004.

Under the new calculations, in 2010, GDP grew 6.1%, versus a previously reported 5.2% and the recession that hit the country in 2009 was milder as GDP contracted 1% on the year versus a previously reported 1.7% contraction.

wsj.com

No comments:

Post a Comment