MercoPress. South Atlantic News Agency

Chilean economy speeding up.

The Chilean economy is expected to end 2003 with a 3,4% expansion and in 2004 should manage to grow 4% given the encouraging external signs, said Economy Minister Nicolás Eyzaguirre.

During a Congressional hearing to describe aspects of the 2004 budget Mr. Eyzaguirre stressed that the recovery of the world economy should help the country's main export copper, increase its price from the current 76 cents a pound to at least 83 cents next year.

However in spite of the good international prospects the budget deficit in 2003 is expected to reach 0,8% of GDP and 0,6% in 2004 with the Gross Domestic Product reaching 65 billion US dollars.

"If international conditions remain positive as well as our export thrust, the Chilean economy could manage to grow 5% in 2005", indicated Mr. Eyzaguirre

Inflation in 2003 is expected to reach 2,6% in the range of 2 to 4% as targeted by the Central Bank. Next year's target is 2,4%.

Besides net government public debt in 2004 is estimated to fall from 10% of GDP to 9,8%.

"Our top priorities for 2004 include combating extreme poverty and the health system reform for which in 2004 we plan to increase social expenditure by 5,4% in 2004", said Mr. Eyzaguirre.