Political Risk Latin America Blog @PolRiskLatam

Chile Q2 growth surges, gov’t warns on strong peso

Posted in News and Articles by politicalrisklatam on August 18, 2010

By Molly Rosbach and Fabian Cambero for Reuters, August 18th , 2010.

SANTIAGO, Aug 18 (Reuters) – Chile‘s economy expanded at the fastest pace since the mid-1990s in the second quarter from the previous quarter, the Central Bank said on Wednesday, while the government voiced worry at the peso’s sharp appreciation.

Gross domestic product expanded by a slightly bigger-than expected 4.3 percent in the second quarter compared with the first quarter, showing the economy of the world’s top copper producer has rebounded after a massive February earthquake.

Second quarter seasonally adjusted growth was the fastest since at least 1996, according to central bank data. (here)

The economy grew by 6.5 percent in the second quarter compared with the same period in 2009, stronger than analysts’ median forecasts for a 6.2 percent rise during the period from a year earlier according to a Reuters survey, and the fastest year-on-year quarterly pace since 2005.

However, June growth data released earlier this month showed the pace of the recovery from the quake is slowing. The growth data reinforced views the central bank will hike its key rate by another 50 basis points next month. (continue reading… )

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