Chile has been one of the few success stories of a global economy that has faced years of instability, and now a new multilateral report is predicting that its growth is expected to continue at least into 2014.
Entitled Economic Panorama 2013, the report by the Organisation for Economic Co-operation and Development (OECD) says that Chile’s gross domestic product (GDP) in 2012 will increase by 5.2 percent, well above estimates made earlier in the year. That figure will make the Chilean economy the fastest growing among OECD members.
Chile became the first South American nation to join the OECD in January 2010, becoming the 31st member of an organization committed to democracy and free markets, and consisting of countries with high-income economies and very high Human Development Index ratings.
According to the Economic Panorama 2013, Chile’s booming economy will ease in 2013 due to global economic uncertainties, but will remain at an enviable growth rate of 4.6 percent. In 2014, Chile’s GDP will once again surge beyond a 5 percent growth rate, the report says.
“With weakening global conditions, activity is projected to slow next year,” it reads. “As export markets, notably China, strengthen in late 2013, growth is projected to pick up again in 2014.”
Much of the growth has been attributed to strong domestic consumption, coupled with Chile’s international reputation as a secure place to invest, which offers high returns.
“The increase in salaries and employment has brought confidence to the consumer, while production capacity and good financial conditions are constantly attracting investors,” the Economic Panorama 2013 reads.
The top marks continue in the sector of employment, with unemployment rates expected to remain well below 7 percent, and in regards to the national deficit, which is expected to sit at 3.5 percent of GDP in 2012, and be reduced to 2.9 percent by 2014.