Economic activity crashed to an over one-decade low in October, while both the peso and consumer sentiment slumped to all-time lows in November. The social unrest has already considerably dampened short-term prospects and the uncertainty surrounding the promised rewriting of the constitution could also significantly alter the longer-term outlook. After nearly three decades of relative stability and impressive economic growth, Chile is now heading into unchartered waters.
font-family:”Arial”,sans-serif;color:#333333″>Looking ahead, our Consensus Forecast sees Chile’s economy growing 2.2% next year. However, underlining the sheer uncertainty of Chile’s outlook, the spread among our panelists’ projections range from 1.3% to 3.0%. Whether or not President Sebastian Piñera can defuse the protests with the new constitution, and whether or not investors take flight at the new spending promises, will have a significant bearing on Chile’s outlook.