Skyline in Chile

Chile GDP Q4 2020

Chile: Economy stabilizes in Q4, amid easing Covid-19 measures and fiscal and monetary stimulus

GDP was unchanged year-on-year in the fourth quarter of 2020, improving markedly from the 9.0% decline recorded in the third quarter, amid the easing of Covid-19-related restrictions on commerce and movement, and robust monetary and fiscal stimulus measures. For the year as a whole, GDP contracted 5.8% in 2020, swinging from 2019’s 0.9% uptick.

Q4’s reading reflected an improvement in both domestic and external demand. Private consumption rebounded and grew 4.1% year-on-year in Q4, swinging from Q3’s 9.0% drop, amid recovering yet still-downbeat consumer sentiment and a steady decline in the unemployment rate. Moreover, the contraction in fixed investment softened to 8.9% in Q4 (Q3: -17.0% yoy), thanks to recovering business confidence and supportive government policies, while public spending expanded 3.5% in Q4, contrasting the 3.5% drop recorded in Q3.

On the external front, exports of goods and services dipped 1.0% in Q4, following Q3’s sharper 6.8% contraction, amid recovering global demand. Meanwhile, imports of goods and services declined at a milder yet still-significant pace of 5.9% in Q4 (Q3: -14.8% yoy), due to reviving domestic demand.

On a quarterly basis, economic activity soared 6.8% in Q4, following the previous quarter’s 5.1% increase.

GDP looks set for a robust rebound this year, following 2020’s slump. Recovering household and investment spending amid supportive fiscal and monetary policy stances should rekindle domestic activity, while external demand will benefit from the gradual reopening of economies. However, uncertainty over November’s general elections and the drafting of the new constitution remains in the background.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest