Chile's Pinera says no risk of economy overheating

AP News
Posted: Apr 03, 2013 1:09 PM

SANTIAGO, Chile (AP) — Chile's president says his country's fast-growing economy is free from risks of overheating.

Sebastian Pinera says Chile must continue to grow at a rate of around 6 percent for several years to eradicate poverty and become a developed country.

Speaking to foreign correspondents Wednesday, Pinera also says there's no fear that could lead to high inflation and economic distortions because Chile relies on foreign investment instead of debt for financing.

Pinera says his government continues to monitor the inflation rate, which last year ended at 1.5 percent.

Strong growth and low unemployment have recently lifted Pinera's approval ratings.

But mounting social demands and frequent protests have troubled the former airline magnate, who remains the most unpopular Chilean leader since Gen. Augusto Pinochet ended his bloody dictatorship in 1990.