Chilean economy grows 7% in third quarter, biggest expansion in 6 years: According to data from the bank, internal demand keeps growing, but at a slower rate than in earlier quarters
La Tercera, one of the more respectable dailies in Santiago, is reporting on the new GDP numbers. It’s a great opportunity to try my shiny new Vennitrans, which converts news articles from anywhere in the world into typical Venezuelan hit pieces. Having already tired of the persistent happy-face version of affairs presented in the Chilean press, I am excited to finally get a Vennietrans. Let’s see what it can do to that headline:
Chilean quarterly growth falls to 2% as internal demand falters: Fishing keeps falling as drought forces more spending on natural gas, water
Here’s an English version of the original story:
The Central Bank said today that the Chilean economy registered 7% growth in the third quarter, the highest since the 7.2% registered in the third quarter of 2004 and similar to the 7% of the second quarter of 2005.
All in all, the figure was in line with market expectations.
The previous quarter, the Central Bank estimated that the economy grew at 6.6% (compared to 6.5% initially reported) while in the third quarter of 2009 growth was a retreat of 1.4%.
According to the emissions institute figures, internal demand continued growing, but at a slower rate than in prior quarters. In the July-September period, internal demand grew at 18.2%, compared to 19.9% the prior quarter.
Consumption contined to support growth with a growth of 10.3% in the third quarter, underlining an advance of 11% in private consumption and 2.2% in government spending.
Fixed capital formation grew 18.5%, moderating its advance compared to prior quarters.
Get all that? Now the Venezuela version:
The Chilean economy grew a seasonally adjusted 2% in the third quarter compared to the second quarter on rising electricity and water costs. Growth was down substantially from the prior quarter as mining, the motor of the economy, barely expanded.
Internal demand growth slowed to 18.2%, compared to 19.9% the prior quarter.
Consumption contined to support growth with a growth of 10.3% in the third quarter, thanks to an advance of 11% in private consumption. Government spending grew only 2.2%, as earthquake reconstruction funds remain tied up in red tape.
Mining GDP rose 2.3%, up from 1.7% growth the prior quarter, thanks entirely to a new production line at a mid-sized copper mine, the bank said. Larger mines suffered from declining ore quality, while gold, silver, iodine and nitrate all pulled the figure down, the bank said.
The fastest growth came from electricity, water and gas, which rose 20%, down from 25% in the second quarter. Drought forced electricity companies to boost consumption of imported natural gas and inflated water bills.
The country’s declining ocean fisheries and blighted salmon farms contributed to a 25% decline in fishing GDP, the sixth consecutive quarter of decline. Agricultural growth fell to 0.6%, as falling avocado output almost nullified gains in beets, livestock and forestry.
Long story short: The Chilean press is no more useful than the Venezuelan press when it comes to analyzing what’s really happening in the country.