Saturday, March 6, 2010

Rapid recovery seen for quake-hit Chilean economy

Chile is braced for billions of dollars in loses stemming from Saturday's massive earthquake, but the country's reputation for sound economic management has investors predicting a recovery within months.
The devastation wrought by the enormous 8.8 magnitude quake, which killed more than 700 people, is painfully evident from the innumerable collapsed buildings and the decimated infrastructure -bridges torn apart and roads split asunder.Total economic losses from the quake could exceed 15 billion dollars, according to EQECAT and AIR Worldwide, two firms which model the impact of disasters.That could wipe out around 10 percent of the country's gross domestic product. A disaster with a similar economic impact in the United States would cost a staggering 1.42 trillion dollars.The effects of the temblor rippled through world markets on Monday, as major exchanges opened for the first time since the quake. Initial economic concerns focused on the impact on copper supply...
Picture Left:Carabineros clean mud off a street after a tsunami and a massive 8.8 magnitude earthquake caused severe wreckage in Talcahuano, 20 kms from Concepcion, Chile on March 1, 2010.Photo courtesy AFP

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