Latin American economic overview - May 22, 2006

General: The overall stability of the area continues to prevail. Domestic demand is picking up even though inflationary tendencies in some countries remain a major concern. Argentina: Domestic demand continues to be strong; unemployment is slowly falling, but the consumer price index is still high. Government is in agreement with various large companies to freeze prices for essential consumer goods. Industrial Production: + 7.1 percent in Q1 2006 compared to Q1 2005 Unemployment: 11.2 percent at the end of Q1; expected to fall under 10 percent early next year Consumer Prices: + 11.6 percent in April 2006 compared to April 2005 External Debt: $108.6 billion in Q1 (61.3 percent of GDP) compared to $167.6 billion in Q1 2005 (108 percent of GDP) Currency: Pesos 3.04 per US$1 as of May 17 (2.89 a year ago) Steel production (in thousands of metric tons): 480 in April, 1839 in the first four months of 2006, 1759 in the first four months of 2005 (+ 4.5 percent) Brazil: Domestic demand is picking up because of falling interest rates. GDP: +3.3 percent P.A. in March compared to + 3.0 percent in February Annual Inflation: + 4.6 percent in April for last 12 months compared to 5.3 percent in March Industrial production: + 3.7 percent in Q1 compared to Q1 2005 Unemployment: 9.5 percent in Q1, slightly up compared to Q4 2005 Currency: 2.17 Real per US$1 as of May 17 (2.47 a year ago) Steel Production (in thousands of metric tons): 2,416 in April, 9,603 in the first four months of 2006, 10,695 in the first four months of 2005 (- 10.2 percent) Chile: Despite a recent softening of the copper price, Chile's economy remains very buoyant and consumer confidence is still strong. Still, unemployment remains defiantly high. Unemployment: 7.9 percent in Q1, same as Q1 2005 GDP: + 5.0 percent in March 2006 compared to March 2005 Consumer Prices: + 3.7 percent in April 2006 compared to April 2005 Industrial Production: + 7.6 percent in March 2006 compared to March 2005 Copper Export: $ 1,963 bn in April 2006, up 43 percent over April 2005 Currency: 5.21 Pesos per US$1 as of May 17 compared to 5.81 a year ago Mexico: Just in time for the July 2 election, the economy is picking up steam, giving the ruling party a good chance to stay in power. GDP: + 5.25 P.A. in January 2006 compared to January 2005 Industrial Output: + 9.7 percent in March compared to March 2005, - 1.34 percent compared to February 2006 Construction: + 9.4 percent in March 2006 compared to March 2005 Production of crude oil + natural gas: + 4.6 percent in March 2006 compared to March 2005 Automobile Output: - 2.1 percent in April 2006 compared to April 2005, automobile exports up by 14.7 percent for the same time periods Inflation Rate: + 3.2 percent in April 2006 (latest 12 months) Currency: 11.1 Pesos per US$1 as of May 17 compared to 11.0 a year ago GDP: + 5.2 percent in January 2006 compared to January 2005 Steel Production(in thousands of metric tons): 1,385 in April, 5,536 in the first four months of 2006, 5,587 in the first four months of 2005 (- 0.9 percent) Venezuela: Even if the oil bonanza is not taken into consideration, the economy is performing very well. The non-oil sector has staged a strong recovery from last year's recession. GDP: + 9.4 percent in Q1, the fourth quarter in a row that growth is more than 9 percent. Unemployment: Gradually coming down. 10.1 percent in March compared to 10.7 percent in February. Some experts forecast the rate to be around 7 percent by the end of the year. Inflation: 0.6 percent in April; consumer prices went up 2 percent in the first four months of 2006, the lowest increase for this time period since 1998. Currency: 2,539 Bolivars per US $1 as of May 17 (2,602 a year ago) Steel Production (in thousands of metric tons): 415 in April 2006 (estimated), 1,695 in the first four months of 2006, 1,500 in the first four months 2005 (+ 12.4 percent)