This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Chile's Pinera Says No Risk Of Economy Overheating


SANTIAGO, Chile (AP) â¿¿ Chile's fast-growing economy is robust, healthy and can continue to expand, free from risks of overheating, President Sebastian Pinera said on Wednesday.

The economy of the world's No.1 copper producer has been growing on the back of its strong mining industry and local demand.

But the finance minister said this week that Chile might take measures to avoid having the economy expand so quickly that productive capacity can't keep pace with demand, boiling over into inflation. The central bank on Tuesday elevated its estimate for growth to 5.5 percent for 2013.

"The bulk of investment in Chile is financed through Chilean savings and only a small part with foreign savings, besides that, the current account deficit is being financed not through debt but through direct foreign investment," Pinera told foreign correspondents at the presidential palace.

While he said the government has a "constant concern of not overheating the economy, I'm convinced that the Chilean economy is growing healthy, strong and in a sustainable way, and that it can continue to grow at this rhythm."

Pinera also said his government continues to monitor the inflation rate, which last year ended at 1.5 percent, below the target rate of between 2 and 4 percent.

Chile has won worldwide acclaim for its growth, productive workforce and transparent institutions. But the Andean nation of 16.6 million people has one of the world's sharpest gaps between rich and poor.

"There's no doubt that for Chile to become a developed country without poverty, we need to grow around 6 percent, not over one, two or three years, but many more years," said Pinera, a billionaire who is in his last year in office.

Strong growth and a nearly six-year-low jobless rate have recently lifted Pinera's approval ratings.

But frequent protests demanding free education, a wider distribution of Chile's copper riches and the return of ancestral lands to Mapuche Indians, have troubled Pinera, who remains the most unpopular Chilean leader since Gen. Augusto Pinochet ended his bloody dictatorship in 1990.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,072.03 +10.80 0.52%
NASDAQ 4,769.4260 +21.03 0.44%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs