india ) latin america ( excl. chile ) 1. 8 1. 4 - 0. 6 9. 3 7. 9 4. 2 4. 5 2. 3 - 0. 5 1. 9 7. 7 5. 6 3. 5 2. 8 2. 2 - 0. 6 2. 0 7. 8 4. 9 3. 8 2. 8 1. 9 - 0. 3 0. 5 8. 0 6. 6 4. 3 3. 3 1. 9 - 0. 4 1. 1 8. 1 6. 3 4. 3 3. 3 2. 3 1. 2 0. 9 8. 2 6. 4 4. 7 3. 7 2. 5 1. 3 1. 3 8. 2 6. 4 4. 7 3. 7 lme copper price ( us $ cent / lb ) brent oil price ( us $ / barrel ) ( levels ) terms of trade - 0. 6 - 5. 0 - 4. 1 1. 3 - 1, 6 ( annual change, percent ) - 0, 8 - 0. 4 ( e ) estimate. ( f ) forecast. sources : central bank of chile based on a sample of investment banks, consensus forecasts, imf and statistics bureaus of respective countries. bis central bankers ’ speeches table 2 economic growth and current account ( annual change, percent ) dec. 12 report 2012 ( e ) mar. 13 report dec. 12 report 2013 ( f ) mar. 13 report gdp 5. 9 5. 5 5. 6 4. 25 - 5. 25 4. 5 - 5. 5 domestic demand 9. 1 6. 6 7. 1 5. 7 6. 1 domestic demand ( w / o inventory change ) 9. 4 6. 8 7. 3 6. 0 6. 1 gross fixed capital formation 14. 7 11. 3 12. 3 7. 6 7. 2 total consumption 7. 9 5. 3 5. 8 5. 5 5. 7 goods and services exports 5. 2 2. 7 1. 0 3. 0 3. 1 goods and services imports 14. 5 5. 5 4. 9 5. 9 5. 9 current account ( % of gdp ) - 1. 3 - 3. 8 - 3. 5 - 4. 6 - 4. 4 ( e ) estimate. ( f ) forecast, source : central bank of chile. figure 4 cpi inflation ( * ) ( annual change, percent ) cpiefe inflation

rodrigo vergara : chile ’ s latest monetary policy report presentation by mr rodrigo vergara, governor of the central bank of chile, before the finance commission of the honorable senate of the republic, santiago de chile, 2 april 2013. * * * the monetary policy report of march 2013 can be found at http : / / www. bcentral. cl. introduction mr. president of the senate ’ s finance commission, senator andres zaldivar ; senators members of this commission, ladies and gentlemen. thank you for inviting me to present the view of the bank ’ s board on recent macroeconomic developments, together with the macroeconomic outlook and its and monetary policy implications. this view is contained in detail in our march 2013 monetary policy report. there is no doubt that the chilean economy is in good standing. in a complex international context where growth in the developed world is still sluggish and particularly the eurozone continues in recession, chile continues to grow at over 5 percent annually, unemployment has fallen and inflation remains low. in these circumstances we must avoid complacency and be alert to the risks facing our economy to reduce their likelihood of occurrence, or otherwise be prepared to deal with them in the best way possible. precisely our monetary policy report traditionally analyzes the baseline scenario, and also risk scenarios. international economic conditions, while still complex, have improved in recent months from the deteriorated conditions of the first half of 2012. china ’ s economic growth has stabilized and the u. s. has avoided much of the drastic fiscal adjustments that were legally programmed for early 2013. this time around, we have revised the global growth outlook slightly upward and external financial conditions have improved thanks to very expansionary monetary policies in the main advanced economies. in contrast, the eurozone remains in recession with still fragile financial and fiscal conditions, as illustrated by the recent events in cyprus. world commodity prices remain high, although copper has had a relapse. chile continues to display a dynamic economy and limited inflation. gdp increased 5. 6 % in 2012, while domestic expenditure rose 7. 1 %, thus increasing the current account deficit to 3. 5 % of gdp ( figure 1 ). in this regard, it is worth noting that in recent years the dynamism of domestic demand has been driven by investment, especially in mining. as shown in a box inside our report, the current level of mining investment is the highest of the past four decades. most recently, the implementation of these projects has had a