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Economic Growth and Inflation in Chile - Essay Example

In 2006 the country demonstrated an at current prices GDP of 19,971,036 during the fourth quarter. This grew substantially by 2011 where during the same quarter for at price gross domestic product Chile posted a figure of 28,995,792. The monthly indicator of economic activity (IMACEC) has also demonstrated that Chile has experienced a steady growth rate. Consider that in January 2010 the rate was at 125.6. This figure has grown through the present day figure of 145.4 as recorded May 2011. In terms of qualitative investigations of Chilean economic development in the 2006 – 2011 period, analysts note that, “Chile has a dynamic market-oriented economy characterized by a high level of foreign trade”. While Chile has experienced steady economic growth the economy remains highly contingent on copper as an export. The country’s reliance on this single export poses volatility problems for future markets. Ultimately, it’s clear that Chile needs to develop broader export potential.

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The Chilean inflation rate between 2006 and 2011 experienced significant change. In 2006 the rate was 3.392%, in 2007 4.408%, in 2008 8.76%, in 2009 1.68%, 2010 1.516%, and the average inflation rate throughout 2011 has been 2.95%…
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