First semester of 2006: good economic results for the Chilean economy

The Chilean economy expanded at 5.5 percent during the second quarter of 2006 and at 4.9 percent in the first semester. The economic growth forecasted for the whole year is 5 percent.

The consumer price index in the first six months of 2006 was 2.1 percent and in the last twelve months was 3.9 percent.

Total exports during the first semester reached $25.8 billion, which represents an increase of 39 % with regard to the same period in 2005. Total imports rose 19 % in the first six months of the year, reaching $16.6 billion.

Bilateral trade between Chile and the United States during ths first semester of 2006 grew 33 % with regard to the same period in 2005. Bilateral trade has grown 130 % since the first semester of 2003, the last year before the Free Trade Agreement between Chile and the United States entered into force.

Chilean exports to the U.S. grew 53 % during the first semester with respect to the same period in 2005, reaching $ 4.5 billion. Despite the fact that the high price of copper contributed significantly to this result, Chilean exports to the U.S. rose 18 % excluding the copper effect in the first half of 2006.

Chilean imports from the U.S. grew at 10 % in the same period, reaching $ 2.7 billion.

Fiscal surplus during the first half of 2006 reached nearly $ 6 billion, representing 4.2 percent of GDP. The main reason for this outcome was the high price of copper, which on average was $ 2.75 the pound. This price is well above the average price of $ 1.25 forecasted for the 2006 fiscal budged. At the end of August 2006 the price of copper reached $ 3.49 the pound, being the average price for the first eight month $ 2.94.