BIS central bankers’ speeches  9  Table 2 Economic growth (annual change, percent) 2008  2009  2010 (f)  2011 (f)  GDP  3.7  -1.5  5.2  5.5-6.5  Domestic demand  7.6  -5.9  16.1  6.6  Domestic demand (w/o inventory changes) Gross fixed capital formation  7.5  -2.8  11.2  8,0  18.6  -15.3  18.9  14.6  Total consumption  4,0  1.8  8.9  5.8  Goods and services exports  3.1  -5.6  1.5  4.9  Goods and services imports  12.2  -14.3  28.5  6.9  Current account (% GDP)  -1.5  2.6  0.3  -1.4  (f) Forecast. Source: Central Bank of Chile. Figure 8 Indicadores de inflación (annual change, percent) 12  12  9  9  6  6  3  3  0  0  -3  -3  06 CPI  07  08  CPIX  CPIX1  09  10  CPI minus foodstuffs and energy  Sources: Central Bank of Chile and National Statistics Institute (INE).
Concluding remarks Let me finish with some short reflections. After several years of heavy turbulences and natural disasters, the Chilean economy is on a very good standing to continue on a path of sustained growth. Price stability has been preserved, preventing inflation from affecting the purchasing power of citizens, especially those with less income and thus less capability to protect themselves against this menace. Growth has consolidated, pushing the rate of job creation to levels we had not seen in years. The contribution of monetary policy to this good performance is unquestionable. It has been flexible enough to be able to be applied when facing sharp changes in the economic environment, with no unnecessary dogma or rigidities. In order for this process to continue over time it needs to be balanced and operate in the context of an inflation rate in line with the target. Otherwise it will become just an unsustainable acceleration calling for drastic adjustments with its related costs in lost output and employment. Evidently, as a country we continue to face challenges, particularly related to maintain sustainable growth rates for long periods and not create tensions on price stability. Guaranteeing low and stable inflation is the best contribution that the Central Bank of Chile can make to prosperity in this new century of independent life that is beginning for our Republic. Thank you.