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Chile is the best evaluated economy in Latin America and, indeed, one of the best evaluated among emerging economies worldwide.
Wednesday, July 29, 2009
Chile is the best evaluated economy in Latin America and, indeed, one of the best evaluated among emerging economies worldwide. Its sustained economic growth and social progress have been highlighted by different international organizations and, in 2010, it became the first South American country to join the Organisation for Economic Co-operation and Development (OECD).
Fiscal discipline is one of the pillars of Chile’s solid economy. Its fiscal accounts have shown sustained stability, with an historic surplus in 2007. This stability was temporarily interrupted in 2009 when, as a result of the international crisis, revenues dropped and government spending had to be increased through a fiscal stimulus plan worth US$4,000 million that, according to the IMF, was one of the five largest in the world relative to GDP.
In the eight years from 2004 to 2011, Chile’s GDP grew at an average annual rate of 4.8%, according to the Central Bank of Chile. In 2011, despite the first effects of the European crisis which were felt in the latter part of year, GDP expanded by 6.0% to US$248,602 million, doubling its growth over the previous six years. As a result, per capita income reached US$14,413 and, in purchasing power parity terms (PPP), US$16,171.