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
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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
November 18, 2020
GDP contracted 9.1% year-on-year in the third quarter, softening from the record 14.5% dive recorded in the second quarter, amid the easing of some Covid-19 restrictions. Nevertheless, the contraction reflected the ongoing impact of the Covid-19 pandemic on both domestic and external activity.
November 9, 2020
Consumer prices increased a seasonally-adjusted 0.68% in October over the previous month, picking up from the 0.64% rise seen in September.
November 5, 2020
Copper prices were broadly unchanged from the previous month in October, as healthy growth in China in Q3 was largely offset by renewed lockdowns in Europe and uncertainty over the U.S. elections.
November 3, 2020
The Adimark GfK consumer confidence index rose to 29.9 points in October, from 26.5 points in September, marking the strongest reading in eight months.
November 3, 2020
Business confidence rose to 51.7 in October from September's 49.8.