Chilean Fed praises Peru’s economic growth

President of Chile’s Central Reserve Bank, Vittorio Corba.
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(LIP-jl) — The President of Chile’s Central Reserve Bank, Vittorio Corbo, praised Peru’s growing economy by stating that it is doing so by having a solid economic foundation, while criticizing Argentina’s economic growth.

"The growth rates of Peru and Argentina are very similar, however, Peru’s rates are based on a solid foundation," commented Corbo while addressing Chile’s Metallurgic and Metal-mechanic Association in a meeting in Santiago.

Corbo explained that Argentina’s growth rate is based upon an expansion of public expenditures which will not be sustainable in the future.

"In Argentina, public spending is increasing by 30%, 40%. Is this sustainable? I do not know," asked Chile’s top economic authority.

According to Andina News Agency, Peru’s economy grew by 8.03% in 2006, representing its largest increase in 11 years, while Argentina’s grew by 8.5%.

In reference to former United States Fed Alan Greenspan’s comments about the possibility of a recession hitting the U.S. economy, the Chilean Fed indicated that it is very unlikely that the U.S. will have one.

"It is possible that the U.S. could experience a recession, but that possibility is very unlikely," claimed Corbo to the mining association.