SANTIAGO: World top copper producer Chile predicts its economy will fare better than initially anticipated in 2021, according to its quarterly public finance report, boosted by a welcome spike in the price of its top export and booming domestic demand.

Gross domestic product (GDP) will grow by 6% in 2021, up from a previous forecast in January of 5%, according to the report.

The price of copper is expected to hit $3.99 per pound, up sharply from a previous forecast of $3.35, the report said.

Domestic demand, meanwhile, is expected to grow 10.7% in 2021, up from a previous estimate of 8.8%.

The report noted that consumer prices would rise 3.4%, up slightly from a prior forecast of 3.0%.