Chile´s Economy Expected to Grow 6 Percent in 2006

Chile, the world´s biggest copper producer, will probably post growth of about 6 percent for a third straight year in 2006 as the country´s exports and investment climb, Deputy Finance Minister Maria Eugenia Wagner said.

The economy next year is on course to grow at a similar to this year´s expected expansion of about 6 percent, Wagner said in an interview. Gross domestic product expanded 6.1 percent last year, the fastest pace since 1997. The government will make its official forecast for 2006 later this year.

“The outlook is good,” Mrs. Wagner said yesterday at the ministry´s headquarters in Santiago. “We have high growth, and there is a high level of investment.”

Chile, along with other Latin American nations, is benefiting from record commodities prices that will lead the region to grow for a fourth year in 2006, according to a forecast by the United Nations.

The expansion is also fueled by business investment as companies take advantage of Chile´s low borrowing costs and trade accords signed in recent years with the U.S., Europe and South Korea, Wagner said.