Chile: Current account turns negative for the first time since the end of 2008
November 18, 2010
In the third quarter, the current account balance recorded a deficit of USD 416 million, which contrasted the USD 176 million surplus recorded in the previous quarter. The reading surprised the market on the downside, as analysts anticipated a USD 120 million deficit in the third quarter. The last current account deficit was recorded in the fourth quarter of 2008. The deficit in the current account balance primarily reflected a deteriorating income balance and a weakening of current transfers. In Contrast, the trade balance improved from a USD 2.8 billion surplus in the second quarter to a USD 3.7 billion surplus in the third, as exports out-performed imports. Exports rose to USD 18.2 billion (Q2: USD 16.2 billion), while imports increased to USD 14.4 billion (Q2: USD 13.3 billion). As a result of the quarterly figure, the annual current account surplus shrank from USD 3.4 billion in the second quarter to USD 2.4 billion in the third.