The latest OECD Economic Outlook report looks bleak for the majority of OECD countries and yet Chile is continuing its good growth of recent years. With 50 million out of work in the OECD areas, and no prospect of relief in the forseable future, the world economy is indeed “far from being out of the woods” as OECD Secretary General Angel Gurría put it in the organisation’s Economic Outloook launch. Nevertheless, Chile’s growth is forecast to reach 5.4% in 2014, whcih compares favourably against the OECD average and the miserable performance of the UK (see figure below).
Chile’s success is thought to be due to increased investment in the country, increasing employment opportunities and real wages. Asa result, it is proposed, consumer confidence has risen increasing domestic demand for goods and services.