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  • Jan 31st, 2010
  • Comments Off on Chile’s 2009 fiscal deficit biggest on record
Chile's fiscal deficit measured 4.5 percent of the gross domestic product in 2009, the government said on Friday, its biggest deficit on record and well above an estimated 3.6 percent for the year. Budget Director Alberto Arenas said this year's deficit was the country's biggest on record due to a sharp fall in revenues amid the worst of the financial crisis and higher stimulus spending.

It said the deficit for the year was equivalent to around $7.22 billion, adding that the fiscal deficit in the fourth quarter was 0.7 percent of GDP. The government's fiscal deficit in the January-September period was equivalent to 3.8 percent of GDP.

Chile, the world's top producer of copper, launched a $4 billion stimulus plan last year to counter the global financial crisis that hurt the value of the red metal and other key exports. An unexpected drop in industrial output in December signals a more gradual recovery for Chile that is seen exiting its first recession in a decade. The Organisation of Economic Co-operation and Development cautioned Chile's stimulus should not be withdrawn too fast. Chile is one of the newest member of the club of wealthy nations.

Copyright Reuters, 2010


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