Chile Economic Outlook
September 15, 2020The economy took a severe hit in Q2, as lockdown measures ravaged domestic activity. Household spending shrank by almost a quarter in annual terms, amid abysmal consumer sentiment and a rising unemployment rate, while fixed investment plunged at the sharpest pace in over 10 years. Available indicators suggest that the worst could be over, however. Economic activity contracted again in July, although at the softest pace in four months. Moreover, both business and consumer confidence ticked up in July and August, pointing to some improvement in sentiment. That said, in late August Moody’s downgraded the country’s outlook from stable to negative due to the impact of the pandemic and sustained uncertainty ahead of October’s national plebiscite. Meanwhile, on the political front, in early August congress passed a law to allow the Central Bank to buy treasury bonds, enriching the Bank’s toolkit.
Chile Economic GrowthThe economy is projected to contract sharply this year, as the pandemic weighs on global demand for commodities and deals a blow to domestic activity. On top of that, uncertainty associated with October’s constitutional vote adds a downside risk. Counter-cyclical monetary and fiscal policies should cushion the economic blow, however. FocusEconomics panelists see GDP falling 5.9% in 2020, which is up 0.2 percentage points from last month’s forecast. In 2021, GDP is seen rebounding and growing 4.9%.
Chile Economy Data
5 years of Chile economic forecasts for more than 30 economic indicators.
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|Bond Yield||3.14||-0.44 %||Dec 30|
|Exchange Rate||752.0||0.05 %||Jan 01|
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Chile Economic News
September 14, 2020
In July, the IMACEC economic activity index fell 10.7% on an annual basis, beating market expectations and following a 12.9% contraction in June.
September 12, 2020
Copper prices continued to increase in August, underpinned by lower supply from China and a weaker U.S. dollar.
September 8, 2020
Consumer prices increased a seasonally-adjusted 0.13% in August over the previous month, picking up from the 0.10% rise seen in July.
September 3, 2020
The Adimark GfK consumer confidence index rose to 25.5 points in August, from 21.2 points in July, marking the strongest reading in five months.
September 1, 2020
Business confidence rose to 42.5 in August from July's 37.8.