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Chile reported today that real GDP was up 6.84% over a year ago, compared
with a 5.26% rise in the second quarter and a 4.65% rise in the first
quarter. Earlier this month, Mexico and Peru reported third quarter
growth near 5%. Brazil and Argentina both of which showed good
second quarter growth, have yet to report third quarter figures.
Brazil is recovering from last year's slump while Argentina has been
coming out of the steep recession that occurred in 2001-2 .
The contrast between steady growth path of Chile's economy and the erratic
path of Argentina is shown in the attached chart.
· Chile's growth in the third quarter was broad based, with all sectors showing good growth. Fixed capital spending was up 14% while other domestic spending was up almost 7%. Although exports of good and services were 15% above those of he third quarter of 2003, imports increased even more to 20%. Nevertheless, Chile maintained a positive balance of trade in goods and services of 203.1 billion Chilean Pesos.