"It's one of the best students in the class," Lagarde said about Chile's economy and the government's ability to keep unemployment at historic levels and inflation controlled at below target of 3 percent.
"It has enjoyed robust growth for the last decade. It has a strong economic policy framework and it has now reinforced the economy resilience in the country in the face of potential external shocks coming from the United States, the European Union and potential volatility of the price of commodities."
Lagarde said Chile, the world's top copper producer, faces potential risks from fluctuations in the price of commodities. She said it could also suffer from a potential U.S. fiscal cliff problem, if it's not resolved in time, and an acceleration of the Euro zone debt crisis.
Luis Andres Henao on Twitter: https://twitter.com/LuisAndresHenao