Santiago, Mar 19 (IANS): The Chilean economy grew 11.7 per cent in 2021, the highest annual increase since record keeping began in the country, the central bank.

According to Chile's National Accounts report for the fourth quarter of 2021, the sustained recovery during the second year of the Covid-19 pandemic managed to reverse the 6 per cent contraction recorded in 2020, reports Xinhua news agency.

The bank noted that the gain "was a reflection of the gradual opening of the economy and of households and businesses adapting better to the health situation and its evolution during the year".

All economic activities examined, except for mining, were up last year, with the highest figures in commerce and personal services, the report stated.

Consumption in general increased by 18.2 per cent, spurred by restaurant, hotel and health services, as well as clothing and food.

"Domestic demand remained dynamic throughout the year, driven by household consumption. Investment also saw a recovery in 2021," the central bank said.

Regarding the trade balance, imports registered an increase, while exports fell, which triggered "a loss of net exports". according to the bank.