The Chilean Economy: International praise in times of crisisPublished: July 08, 2009
The president of the World Bank, Robert Zoellick, praised Chile's solid position against the current global crisis, expressing his belief that it is still a very difficult time for many of the world's nations.
As part of his visit to Chile to attend the Second Annual Summit of Latin America and Caribbean Treasury Ministers, Robert Zoellick praised the social and financial policies applied in Chile to confront the crisis.
According to Zoellick, savings from copper income, good monetary policy administration, and a flexible and competitive exchange rate combined with low public debt put Chile in a good position considering the effects of the crisis at both the local and international level.
"Despite the fact that the world is in a very deep recession, Chile and other countries in the region are well positioned to be able to manage the crisis effectively. Chile is a good member of the World Bank and it would be excellent if they could share their experience in pension plans, exploitation of natural resources, as well as their management of the fishing and aquaculture industries," stated Robert Zoellick.
The Chilean Treasury Minister, Andrés Velasco, stressed Chile confronted the crisis with a "healthy" financial system which allowed for a "strong and timely" response. Mr. Velasco pointed out that the countercyclical policies utilized "required money" to be successful.
Despite the positives, Mr. Velasco admitted Chile was going through "difficult times," but that the economy was prepared to recover from a slight contraction that could happen at the end of the year.
Chile has been applauded in international forums for having saved the income it earned as a result of an increase in world copper prices, the country's chief export. These savings have given Chile resources in times of crisis. "We are confident that we will emerge from this crisis better prepared," said President Bachelet about the Chilean Economy.
Zoellick stated that the positive outlook did not mean these countries would escape the crisis, but rather they "have more flexibility to combat it".
Positive Signs in the Stock MarketFrom January to June 2009, the local stock market registered its best first semester performance since 1997. The market far outperformed the lean second semester of last year when it was greatly affected by the world financial crisis.
Between January and June of this year, the IPSA Index of the Santiago Stock Exchange registered a gain of 30.21%, its largest return since the first semester of 1997, with the retail area registering the largest gains.
Sources:www.economiaynegocios.clwww.latercera.comusa.invertia.com