Chile: Business confidence index rises in October although fails to catch the effects of protests
November 4, 2019
The business confidence index (IMCE), published by ICARE and the Adolfo Ibáñez University, rose in October, coming in at 51.5 points (September: 50.7 points). As a result, the index moved further above the crucial 50-point threshold that separates optimism from pessimism among Chilean businesses. However, ICARE highlighted that 92% of the survey was completed on 18 October, the day on which widespread protests began; therefore, October’s IMCE does not reflect business confidence accurately.Panelists surveyed for this month’s LatinFocus report project fixed investment to expand 3.9% in 2020, which is down 0.3 percentage points from last month’s forecast. For 2021, they project it to grow 4.3%.
Author: Nicolás J. Aguilar, Economist