IMF estimates that Chile's GDP will be the Higher of South America in 2011

The International Monetary Fund (IMF) estimates that Chile’s GDP will reach US$243,049 million in 2011, representing an increase of 6.5% on 2010, in its September edition of the World Economic Outlook. The report also anticipates that, in 2012, Chile’s economy will grow 4.7% amid a global context of slowing growth.

If Chile maintains this trend, per capita income on purchasing-power-parity (PPP) would reach US$20,186 in 2016. In that case, approaching the level of developed countries, Chile would be one of the world’s 40 largest economies. So far, the country leads the economic expansion of the OECD and has the second best growth rate of South America after Argentina. In 2012, its growing will be in third place after Peru and Paraguay.

The IMF forecasts an inflation rate of 3.1% for this and the next year, five points below the estimation of April. Regarding to unemployment, the report kept the projection of 7.2% of the last measure to 2011 and 2012.

For South America region, the average growth will be 4.9% this year and 4.1% in 2012. The report says that “the Latin American and Caribbean (LAC) region expanded rapidly in the first half of 2011, led by vibrant activity in many of the region’s commodity exporters”.

However, the pace of expansion has begun to moderate and, despite their potential, some economies may be overheating.