MercoPress. South Atlantic News Agency

Chilean economy expands 4,9%

The Chilean economy expanded at an annual rate of 4,9% during the first half of 2004, compared to the same period a year ago according to the latest report from the Central Bank.

The expansion rate is in line with private analysts' projections who estimate the Chilean economy will end 2004 growing 5%.

The release indicates that manufacturing, fisheries and retail proved the most dynamic sectors of the economy.

Domestic demand actually increased 5,5% with a strong acceleration in the last twelve months particularly since the first quarter recorded 5,7% growth and 8% during the following quarter.

Investment which was proving one of the soft points of the current recovery rebounded at a 6,9% expansion rate.

Finance minister Nicolas Eyzaguirre addressing this Tuesday a gathering of Chilean and Brazilian businessmen anticipated that the good performance of the Chilean economy will translate into a GDP of 90 billion US dollars this year and 100 billion US dollars in 2005.

To keep growing "Chile needs to work more, not less, and banish all populist practices which has proved a broken dream for millions of poor people in Latinamerica", underlined Mr. Eyzaguirre.