Chile's economy is expected to expand by between four and five per cent this year, potentially generating a quarter of a million new employment opportunities.

This is according to the country's president Sebastian Pinera, who has declared it is recovering strongly from the global economic downturn and is anticipated to see higher jobs increases than previously predicted, the Wall Street Journal reports.

He stated that the country witnessed year-on-year growth of 4.6 per cent during April this year and 7.1 per cent in May, its highest level since 2005, the news source continues.

"Our economy is now marching along with a lot of strength," Mr Pinera explained, adding that economic expansion is expected to be in excess of five per cent in 2011.

With a population of around 17 million, Chile suffered a devastating earthquake in February, which caused a tsunami and measured 8.8 on the Richter scale, killing more than 500 people and damaging many thousands of homes.

Posted by Lee Thrace