SANTIAGO (Reuters) – Chile’s central bank said on Wednesday the economy would grow 6% to 7% in 2021, a greater expansion than previously predicted, buoyed by one of the world’s most successful vaccination drives.
The bank predicted average annual consumer prices in the world’s top copper producer would rise 3.4% in 2021, according to its Ipom quarterly economic report.
The South American nation is among the global leaders in vaccination per capita and has far outpaced its neighbors in Latin America. Around 35% of Chileans have received at least one dose of a vaccine, according to a Reuters tally.
The more favorable scenario next year will be bolstered by a soaring copper price of $3.95 per pound, the bank predicted. The metal accounts for around half of the South American nation’s exports and is vital to economic output.
Despite bright spots on the horizon, the bank warned in the report that the overall economic recovery has been mixed, with some sectors struggling more than others.
The bank said investment, for example, was recovering more slowly than consumption as uncertainty over the pandemic continues to cloud business decisions.
Reporting by Dave Sherwood; Editing by Andrew Heavens, William Maclean
