Chile Economic Outlook
July 10, 2018Economic momentum seemingly held up in the second quarter, following an exceptionally strong first quarter, in which the economy expanded at a near five-year high. Economic activity remained elevated in May, after soaring to the highest rate in five years in April. Business confidence remained upbeat throughout Q2, pointing to sustained expansionary conditions and the improving health of the manufacturing industry. Consumer sentiment was also fixed in positive territory in the same period, against the backdrop of a broadly stable inflationary environment and labor market. In turn, retail sales rebounded in May, potentially signaling more solid household spending in the quarter. On the external front, export growth decelerated again in May, but remained generally strong. In a move to capitalize on buoyant copper demand, the government announced on 29 June a USD 1 billion capitalization into the state-owned mining company Codelco, which should ensure sustained production levels going forward.
Chile Economic GrowthSolid global demand for copper should help GDP expand at a five-year high in 2018. Meanwhile, domestic demand will benefit from an accommodative monetary environment and improving labor market conditions, which will spur economic activity. FocusEconomics panelists see growth of 3.6% in 2018, which is up 0.1 percentage points from last month’s forecast, and 3.3% in 2019.
Chile Economy Data
5 years of Chile economic forecasts for more than 30 economic indicators.
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|Bond Yield||4.57||-0.44 %||Jul 13|
|Exchange Rate||650.4||0.05 %||Jul 13|
|Stock Market||26,850||-0.67 %||Jul 13|
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Chile Economic News
July 6, 2018
The Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) came in at 52.7 points in June, up from 51.2 in May and marking the strongest reading so far this year.
July 6, 2018
Consumer prices rose 0.1% in June, edging down from the previous month’s reading (May: +0.3% month-on-month) and coming in marginally below market expectations of a more moderate 0.2% increase.
July 5, 2018
Economic activity rose 4.9% year-on-year in May, according to the Monthly Indicator for Economic Activity (IMACEC) published by the Central Bank of Chile.
July 3, 2018
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez edged down from May’s 55.9 points to 55.1 in June.
July 2, 2018
Copper prices surged to an over four-year high on 8 June, but have trended firmly downward since, dropping to multi-month lows at the end of the month amid a stronger U.S. dollar and intensifying trade war concerns.