Investment in Chile
Chile - Investment
Pace of economic contraction softens in Q3, on easing Covid-19 measures
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. Private consumption shrank 8.8% year-on-year in Q3, a milder contraction than Q2’s 22.2% plunge, amid recovering yet still-downbeat consumer sentiment and a slight decline in the unemployment rate. Moreover, the contraction in public spending softened from 13.3% in Q2 to 3.7% in Q3, while fixed investment contracted a sizable 18.5% in Q3 (Q2. -20.9% yoy), due to uncertainty associated with both the pandemic and the outcome of the constitutional referendum on 25 October.
On the external front, exports of goods and services dived 7.2% in Q3, contrasting Q2’s 1.9% expansion, amid still-muted global demand and disrupted supply chains. Meanwhile, imports of goods and services declined at a milder yet still significant pace of 15.0% in Q3 (Q2: -20.9% yoy) due to a less pronounced contraction in domestic demand.
On a quarterly basis, economic activity rebounded 5.2% in Q3, contrasting the previous quarter's 13.5% plunge.
The 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 - Investment Data
|Investment (annual variation in %)||-0.3||-1.3||-3.1||4.8||4.2|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||3.14||-0.44 %||Dec 30|
|Exchange Rate||752.0||0.05 %||Jan 01|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
February 12, 2021
Copper prices continued to increase in January, supported by fiscal stimulus measures in the U.S. and upbeat demand prospects.
February 9, 2021
Consumer prices jumped a seasonally-adjusted 0.70% in January over the previous month, following the softer 0.34% increase seen in December.
February 3, 2021
Business confidence rose to 54.4 in January from December's 48.0, marking the strongest sentiment since September 2018.
February 3, 2021
The Adimark GfK consumer confidence index dipped to 29.5 points in January, from 29.8 points in December.
February 2, 2021
At its 26–27 January meeting, the board of the Central Bank of Chile unanimously decided to keep the monetary policy rate unchanged at 0.50%, its lowest point since 2009.