• by IPS Correspondents (santiago)
• Wednesday, December 21, 1994
• Inter Press Service

SANTIAGO, Dic 21 (IPS) - The Chilean economy is expected to consolidate its recent growth over the course of the coming year, with economic growth and lower inflation and unemployment rates, according to government predictions.

Economic Minister Alvaro Garcia said Tuesday that the country would see a six percent increase in its gross domestic product (GDP) in 1995, with eight percent inflation and unemployment averaging 5.5 percent.

Preliminary figures show GDP growth between 4.5 and 5.0 percent for this year, while inflation is expected to total some nine percent and unemployment 6.5 percent.

Garcia added that the Chile had concluded the adjustment process begun in late 1992, and is now consolidating a higher level of economic activity while reducing inflation.

The fall of inflation from 12.2 percent in 1993 to a single digit this year surpassed the government's expectations, which were originally set at 10 to 11 percent.

Meanwhile, Jorge Desormeaux, an economist with the Catholic University - which has ties to the right-wing opposition National Renovation Party - said Wednesday that it would be realistic to predict inflation as low as five to six percent for 1995.

According to Desormeaux, the Chilean Central Bank will win "a significant victory in the fight against inflation" in the coming year, "easily" achieving inflation below nine percent.

The Consumer Price Index (CPI) rose 8.3 percent between January and November of this year, and according to the most recent Central Bank inflation data, December rates will come to 0.3 percent.

If this proves to be the case, the CPI wil have risen a total of 8.6 and 8.7 percent over last year's rate.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

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