MercoPress. South Atlantic News Agency

Chile headed for record export year.

Chile is headed for a record export year according to the latest release from the country's Central Bank indicating that overseas sales in the first five months of 2004 jumped 44% compared to a year ago, totalling 12,8 billion US dollars.

The strong demand and increased prices for copper, cellulose and fish products, plus the recovery of Asian and the US economies have consolidated the export expansion.

Experts forecast that if the trend continues, the total value of this year's exports should reach over 30 billion US dollars, above the most optimistic projection of the Chilean Central Bank, 28,2 billion US dollars.

The strong foreign demand has also helped to balance the soaring price of oil, which represents 17% of Chile's imports, and has helped to keep the local currency stable at 640 pesos to the US dollar.

Imports also expanded 16% in the first five months of this year reaching 8,5 billion US dollars. This represents a trade surplus of 4,3 billion US dollars, 175% over the same period last year.

If the trend continues Chile will finish 2004 with a trade surplus of 7,3 billion US dollars, meaning the country will have managed for the first time in many years a current account surplus.