Chilean economy grew 6.5 percent in the second quarter

The Chilean economy continues to grow, reaching an impressive 6.5 percent in the second quarter of 2005, according to Chile’s Central Bank. During the first six months of this year the Chilean economy confirmed its strong performance by growing at a 6.3 percent rate. The Central Bank expects between 6 and 6.5 percent GDP growth for 2005.

This strong performance is driven by favorable development of the export sector, a solid consumer demand, and a pickup in investment, which grew at a 25 percent rate in the first quarter of 2005.

A direct consequence of this strong pace in economic growth is a significant reduction in unemployment. According to the National Statistics Institute (INE) the Chilean economy created more than a quarter-million jobs in the past year.

Chile is the world’s biggest copper producer and has benefited this year from record international prices for this metal.