Americas > South America > Chile > Chile anticipates mild slowdown after years of strong growth

Chile: Chile anticipates mild slowdown after years of strong growth

2013/05/18

But the galloping increase has been reined in. The economic activity indicator expanded by 3.1% in March, marking its slowest pace in additional than 20 months. “Amount measurements of the consumer price index show a low inflation. At the same time the economy is slowing down,” Larrain said at a conference with international correspondents.

 Chile's economy is entering a mild slowdown phase after years of strong growth said Finance Minister Felipe Larrain on Friday. Chile has been expanding at about 5.8% on average for the past three years despite global economic woes while maintaining enviably low inflation and jobless rates.

Larrain said economic activity should recover in April but increase will be affected by a series of port strikes that blocked exports of copper, fruit and wood pulp in late March and April.

”I think there are five nations in the world that can tell an (economic success) story like the one Chile's lived in the completed years, being able to keep increase at around 6%“ Larrain said.

”This has to do with a recovery of trust, expectations and public policies in this period.”Chile is seen as probably the best managed Latin American economy because of its strong increase, prudent macroeconomic policies and solid institutions.
But critics say policies launched under former dictator Augusto Pinochet that privatized much of the country are still blocking urgent social reform and fostering social exclusion.

Chile has the worst inequality rate part the 34 nations of the Organization for Economic Co-operation and Development and millions have protested for a wider distribution of Chile's copper wealth, the preservation of the environment and free education.
On Thursday Chile's central bank held its key interest rate as expected at 5%, following softer economic increase and domestic request in the prime quarter inclunding a weaker peso currency.

The rate has been held at 5% since a surprise cut in January 2012, as external economic threats countered by robust local economic increase, low inflation and ebullient domestic request have kept the bank's hands tied.
 

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