Chile: Businesses turn more pessimistic in Q4
February 3, 2016
In Q4, the mood among Chilean businesses deteriorated and dropped to the lowest level since the financial crisis. The business confidence index (IEE, Indice de Expectativas Empresariales) produced by the Santiago Chamber of Commerce (Camara de Comercio de Santiago) fell from Q3’s 49.8 points to 48.3 points in Q4, the lowest reading since Q4 2008. As a result of the decrease, the index rested below the 50-point threshold that separates optimism from pessimism for a second consecutive quarter.
According to the Santiago Chamber of Commerce, the decrease in Q4 mainly reflected a downward adjustment in businesses’ expectations for economic growth in the next years as well as uncertainties regarding future economic, political and institutional developments in Chile. On top of this, depressed commodity prices, currency depreciation, uncertainty surrounding China’s economy and the impact of low oil prices on the U.S. are also dragging on business sentiment.