Chilean GDP drops 4.5%

The number released today by the Chilean central bank is, according to analysts, the biggest plunge in Chilean economy. Somehow, Finance minister Andrés Velasco is happy with the result.

The origin of this crisis is the chain reaction of the American crisis started in September 2008 with the bankruptcy of Lehman Brothers investment group. After almost one year of different economies falling, the worldwide crisis hits us big. As an effect of the low demand on the export market, our production has been contracting to this point.

The minister claims that our strong economy during this last years gave as a good and firm position to receive this crisis. So he feels confident and hopeful about our soon recovery.

As a recovery plan, the government is bringing back to our country 4 billion dollars from our savings in Swizz banks. The idea is to introduce this money into our banking system to low down the prices of loans. That way, the economy should be reactivated.