Chilean economy surprises with 3.9% growth and confirms recovery

The number confirms the positive performance in November, with a reactivation that puts an end to the worst crisis in the last 20 years.

Chilean economy
Chile technically becomes one of the first countries in the region to overcome the crisis

The Chilean economy surpassed the most optimistic expectations and grew by 3.9% in the last month of the year, thus confirming the country’s reactivation after registering 3.1% growth in the Monthly Economic Activity Indicator (Imacec) last November.

The most optimistic projections had estimated growth of around 3%. According to the Central Bank (BC), the strong performance by the retail sector, electricity, gas and water and certain industrial activities had influenced this positive result.

Thus, Chile technically becomes one of the first countries in the region to overcome the crisis, considering that it finished the last quarter with 2% growth, putting an end to three consecutive quarters with negative growth in 12 months.

Likewise, the BC reported that an increase of 0.6% was registered compared to the same month in 2008, while the cycle trend series is registering annualized expansion of 5.5%.

The results confirm the Chilean experts’ expectations for 2010, estimating that Chile will be capable of quickly returning to the levels of growth that preceded the crisis. The Central Bank has projected that the Chilean economy will grow 4.6% this year.

For its part, the Association of Banks and Financial Institutions (ABIF) has estimated that national economic expansion will be 5.5% and that this performance will be fostered by the improved international scenario and the recovery of productive sectors.

It should be noted that Chile’s solid macroeconomic performance – the country ranks among the 10 most open economies in the world – has allowed it to overcome the worst crisis of the last 20 years in an appropriate and prudent way, something that the relevant international institutions have acknowledged and which also contributed to  Chile’s admission into the Organization for Economic Cooperation and Development (OECD).

This post is also available in Spanish