Chilean Central Bank Boosts 2005 Growth Forecast to Up to 6.25%

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Jan. 19 (Bloomberg) -- Chile's central bank raised its forecast for economic growth in 2005, saying that domestic demand is strengthening.

The economy will grow between 5.25 percent and 6.25 percent in 2005, compared with 5.8 percent in 2004, the Santiago-based central bank said in a report to lawmakers. The central bank on Sept. 14 had forecast 2005 growth of between 4.5 percent and 5.5 percent.

Chile is benefiting from strong demand for its exports and more spending by consumers taking advantage of low interest rates, said Miguel Santana, an economist at Banco Santander SA, the nation's largest bank.

``There's a leap in growth,'' Santana said in a telephone interview. ``Consumer spending is very strong and so is investment.''

Bloomberg