Chile Economic Outlook
October 11, 2021Following robust growth in Q2, the economy appeared to gain momentum in Q3, spurred by sizable fiscal stimulus, pension drawdowns and the unwinding of restrictions amid a sharp fall in new Covid-19 cases. Economic activity recorded strong growth in July and August, while unemployment declined notably in the same period, which together with stronger consumer sentiment likely supported private spending. Moreover, business confidence recorded an over nine-year high in September, boding well for capital spending. However, mining activity was muted in the first two months of Q3 amid labor disputes. In politics, in late September the government presented the 2022 budget, which has a focus on mending public finances: Spending is expected to fall over 20% relative to 2021 levels as the health crisis recedes, with the overall and structural budget deficits forecast to narrow sharply.
Chile Economic GrowthThe economy should recover rapidly this year, spurred by fiscal spending, further pension withdrawals, increased copper demand and the gradual removal of restrictions. However, growth will slow sharply in 2022 on a weaker base effect and a less expansive fiscal stance. New Covid-19 strains, this November’s general elections and the constituent process all cloud the outlook. FocusEconomics panelists see GDP growing 9.8% in 2021. In 2022, GDP is seen expanding 2.8%, which is down 0.2 percentage points from last month’s forecast.
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
October 13, 2021
At its 13 October meeting, the board of the Central Bank of Chile decided to hike the monetary policy rate by 125 basis points to 2.75%, a larger increase than markets were anticipating.
October 11, 2021
Consumer confidence came in at 92.3 in September, up notably from August's 81.6.
October 8, 2021
Consumer prices rose 1.18% in September over the previous month, picking up from August's 0.36% rise.
October 4, 2021
Business confidence rose to 60.7 in September from August's 60.4.
October 4, 2021
The consumer confidence index, produced by the Universidad del Desarrollo, dropped to 81.6 points in August from 87.5 points in July, which had marked the strongest result since September 2019.