MercoPress. South Atlantic News Agency

Chile forecasts strong recovery

Chile's Finance Minister Mr. Nicolás Eyzaguirre anticipated that the country's economy will pick up strongly in the second half of 2002, contrary to what happened in the last quarter of 2001, “the worst in several years”.

"We believe we're close to the inflection point and in the second half we'll experience a strong growth in production and domestic demand", said Mr. Eyzaguirre during an informal meeting with the press in Santiago.

However Mr. Eyzaguirre pointed out that if international recovery and an increase in trade are not sufficient to bolster the Chilean economy, the government could consider credit and fiscal incentives, "as long as they keep in line with our balanced framework".

Mr. Eyzaguirre admitted that the soft spot of the current economic policy is unemployment and the creation of new jobs. Chile's unemployment figures particularly in metropolitan Santiago reached some the highest levels since the country recovered its democratic system more than a decade ago.

"We expect that as domestic demand and consumers confidence begins to pick up it will have a direct impact in the job situation", said Mr. Eyzaguirre.

Chilean president Ricardo Lagos back from what was described as a successful European tour stressed that during 2002 the government is determined to make "an additional growth effort and bring unemployment figures down".