Chile's economy will grow 4.5-5% this year despite the impact from the 8.8 magnitude earthquake that struck the country on February 27, said economy minister Juan Andrés Fontaine

Barclays Capital said it expects Saturday's earthquake to have a short-lived effect on Chile's GDP growth this year. In a report, it compares the impact that the tsunami in 2004 had on the economies of Indonesia and Thailand. The economy decelerated in Indonesia and contracted in Thailand during the quarter after the tsunami, but growth in both nations returned quickly after that.

JPMorgan said in a report that Chile's economy will likely expand 5.5% this year, above the 5% previously forecast, because of the massive reconstruction work needed after Saturday's devastating earthquake.
 

Chilean economic growth could accelerate to a 6%+ annualized pace in the second quarter of the year, Banco de Chile's investment banking branch BanChile Inversiones said in a report to its clients. The recovery will be a consequence of rebuilding plans expected from the government after the 8.8 grade earthquake that affected central-south Chile, where most of the country's industrial capacity is located. The bank also expects a recovery in employment in the medium term, especially in the construction sector. In the short term the Chilean economy will face some inflation pressure as a result of supply disruptions, but it will ease in the medium term, the report says. As a result of the economic emergency, the Central Bank is expected to maintain the benchmark interest rate at current levels at least until June or July.