Chile’s GDP grows steadily in second quarter of 2011

All non-mining sectors experienced growth while internal demand continued to increase, fueled by strong household consumption.


Chile is continuing to withstand the troubles affecting the global economy, posting strong economic figures for the second quarter of 2011.

The country’s economy grew by 6.8 percent from April to June this year, and was up 8.4 percent in the first half of the year.

The June figures were revealed in a report from Chile’s Central Bank, which noted that the second quarter had one extra working day this year.

“Compared with the same period last year, all activities have registered growth, with the exception of mining which experienced a small contraction,” said the Central Bank report.

After seasonal adjustments, gross domestic product (GDP) grew by 1.4 percent in comparison with the first quarter.

The economic results were welcomed by Chile’s Finance Minister, Felipe Larraín, who said the figures proved that the country had a stable economic footing.

“We are satisfied because the economy has surpassed where it was in previous months and is growing steadily and at a fairly rapid rate,” Larraín said. “The Chilean economy continues to grow in a strong and sustainable manner.”

The report also revealed that internal demand rose by 9.4 percent in the second quarter, up 12 percent compared to June 2010.

“This outcome was led by household consumption,” said the report. “National investment also grew, driven mainly by spending on machinery and equipment.”

Foreign trade also received a boost thanks to healthy growth in both the export and import of goods and services.

Gross national income experienced real growth of 8 percent due to favorable trade terms, while nominal gross savings accounted for 24.5 percent of GDP. Chile’s current account balance is close to zero.