Chile Economic Outlook
December 4, 2018Growth dropped notably in the third quarter, after hitting a six-year high in the second quarter, amid faltering mining activity and weak external sector metrics. Mining GDP contracted for the first time in over a year in the quarter, largely as a result of lower copper output. In turn, this weighed on Chilean exports growth, which recorded the weakest print since Q2 2017. On the domestic front, private consumption lost some traction in Q3, against the backdrop of seven-year high unemployment and intensifying inflationary pressures. On a brighter note, a buoyant construction industry and sustained investment in machinery and equipment propped up solid fixed investment growth in Q3, which ticked up to an over five-year high. Overall, the fundamentals of the economy remain healthy with sequential data signaling a robust expansion in both consumption and investment activity in the third quarter.
Chile Economic GrowthThe economy is seen recovering swiftly from the third-quarter slowdown and finishing this year on a strong footing. Growth next year should remain solid, largely driven by sturdy domestic demand, although the pace of expansion will ease from this year’s print amid a moderation in global trade. Moreover, the tightening labor market should prop up higher wages, driving private consumption in turn. Met the why particular panelists see GDP expanding 3.3% in 2019, which is down 0.1 percentage points from last month’s forecast, and 3.1% in 2020.
Chile Economy Data
5 years of Chile economic forecasts for more than 30 economic indicators.
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|Bond Yield||4.61||-0.44 %||Dec 14|
|Exchange Rate||683.8||0.05 %||Dec 14|
|Stock Market||26,184||-0.67 %||Dec 14|
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Chile Economic News
December 7, 2018
Consumer prices remained unchanged from the previous month in November, compared to a 0.4% increase in October.
December 6, 2018
The Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) fell to 44.9 points in November, from 46.7 points in October, marking the weakest reading since August 2017.
December 5, 2018
According to the IMACEC monthly economic activity index published by the Central Bank of Chile, economic activity rose 4.2% in annual terms in October, up from the previous month’s 2.1% increase.
December 5, 2018
At its monetary policy meeting on 5 December, the board of the Central Bank of Chile (BCC) voted unanimously to hold the key policy rate unchanged at 2.75%.
December 3, 2018
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez fell from 53.6 points in October to 49.0 points in November.