MercoPress. South Atlantic News Agency

Chile forecasted to grow 4,9%.

Chile is forecasted to grow 4,9% in 2004 helped by bullish prices of copper, still the country's main export, and a greater dynamism from domestic demand. In the last quarter of 2003 the government had estimated growth for this year to reach between 4 and 5%.

Addressing the Chilean Senate Finance Committee, Mario Marcel head of the Budget Department of the Finance Ministry revealed that the average copper price for 2004 had significantly increased from the anticipated 83 US cents the pound, (on which the budget was calculated) to 120,3 US cents, and for each extra copper price cent, Chile receives an additional 100 million US dollars.

Inflation is estimated to reach 1,8%, down from the original forecast of 3%.

Mr. Marcel said that with the encouraging news from the foreign sector, domestic demand that has been lagging since 1999, should show a robust expansion that could reach 6,4%, a point ahead of the original estimate.