Chile has a lot to be happy about. As the mining drama comes to a denouement, Chile’s stock market, along with the country-related exchange traded fund, surges on the fortunate news, and the economy is expanding at a robust pace.
Chile’s 33 trapped miners have been hoisted to safety after being stuck underground for 69 days due to a collapsed mine shaft, writes Ronald Weisenstein for Benzinga. The miners were individually brought to the surface in a capsule that is barely wider than the width of a man’s shoulders, which took around 15 minutes per journey through 2,050 feet of earth.
On Wednesday, as the news spread of the first miners being brought to the surface, the Chilean stock markets ended on a positive note, increasing by 2%.
The Chilean Central Bank may only increase rates by 25 basis points to 2.75% as the economy surges onward, but domestic demand and inflation are running at a more moderate pace than previously expected, according to Reuters.
Chile’s economy grew 7.6% in the third quarter, the most since January 2005, report Sebastian Boyd and Randy Woods for Bloomberg. Industrial output increased by 6.9% in August year-over-year, or the fastest in over four years.
The Chilean peso has appreciated 4.7% against the dollar this year, which makes it the second-best performing currency in Latin America.
The Central Bank projects that the economy will expand by 5% to 5.5% this year and up to 6.5% in 2011. The International Monetary Fund forecasts an economic growth of 5% this year and 6% next year. (Click to enlarge)
- iShares MSCI Chile (ECH)