Chile Economic Outlook
November 10, 2020The economy likely rebounded in Q3, after plunging in Q2 due to strict lockdown measures, and available indicators point to a further improvement at the beginning of Q4. Activity expanded month-on-month throughout Q3, benefiting from an improving performance in the non-mining sector. Moreover, retail sales expanded strongly in annual terms in August-September, which, coupled with rising consumer sentiment, suggests household spending started to recover. Moving to Q4, a further improvement in both business and consumer confidence points to firming activity. Meanwhile, in mid-October, Fitch Ratings downgraded Chile’s credit rating from A to A-, citing worsening public finances due to the pandemic and increasing social pressure. Meanwhile, later in the month, voters overwhelmingly backed a plan to rewrite the constitution, raising uncertainty over the scope of government intervention in the economy.
Chile Economic GrowthThe economy is seen contracting at a marked pace this year, before rebounding in 2021. A sizable recovery in domestic demand, helped by supportive fiscal and monetary policy measures and the gradual reopening of the global economy, will underpin growth. That said, political uncertainty and possible further waves of the virus cloud the outlook. FocusEconomics panelists see GDP growing 4.9% in 2021, which is up 0.1 percentage points from last month’s forecast. In 2022, GDP is seen expanding 3.4%.
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
May 4, 2021
Business confidence dropped to 51.4 in April from March's 55.9, which had marked the strongest sentiment since June 2018.
May 4, 2021
In March, the IMACEC economic activity index jumped 6.4% on an annual basis, contrasting a 2.2% drop in February.
April 17, 2021
Copper prices continued to rise in March, boosted by strong global manufacturing activity and despite easing supply concerns.
April 9, 2021
Consumer prices jumped a seasonally-adjusted 0.37% in March over the previous month, following the softer 0.19% increase seen in February.
April 2, 2021
Business confidence rose to 55.9 in March from February's 55.7, marking the strongest sentiment since June 2018.