(Bloomberg) -- Chile’s economy grew more than expected during the second quarter as one of Latin America’s richest nations was injected with billions of dollars in stimulus to soften the blow from its worst coronavirus surge.

Gross domestic product grew 1% from the first quarter, more than the 0.7% median estimate from analysts in a Bloomberg survey. The economy expanded 18.1% from a year prior, the central bank reported on Wednesday. 

Chile battled a record surge in virus cases during the period with strict lockdowns, longer nightly curfews and a border closure. The blow was offset in part by greater fiscal stimulus including cash transfers, as well as a new round of early pension fund withdrawals. Going forward, growth will speed up as vaccinations drive down infections while the economy slowly reopens.

Read more: Emerging Markets’ Biggest Pandemic Spender Extends Emergency Aid

Mining increased by 3.1% compared to the first quarter, according to the central bank. Internal demand rose 1.6% during the period, driven by household consumption of durable goods.

The South American country will see GDP expand by as much as 9.5% this year, according to the central bank. On top of that, lawmakers are debating new pension drawdowns which may add even more impetus to economic growth.

The seven-day moving average for virus cases has plunged to about 800 from over 7,000 at the start of June, government data show. Chile on Tuesday recorded its lowest test positivity since the start of the pandemic, at just 1.2%.

Prospects of a stronger recovery prompted policy makers to start raising their interest rate last month. Chile traders surveyed by the monetary authority expect borrowing costs to rise to 2.25% in a year from 0.75% currently.

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