Chile Economic Outlook
June 14, 2022Recent data shows that annual economic growth eased in Q1, with private consumption, public spending, fixed investment and export momentum all softening. Moreover, activity contracted on a quarter-on-quarter basis. Turning to Q2, the economy shrank in month-on-month terms in April. However, this was purely due to weaker mining output, as non-mining activity expanded. In particular, consumer spending was robust—notwithstanding surging inflation and interest rates—with the reduced incidence of Covid-19 cases likely playing a role. Meanwhile, business sentiment averaged lower in April–May relative to Q1, hinting at more subdued investment. In politics, in mid-May the constituent assembly finished drafting the new constitution. The text enhances the role of the state, but should broadly safeguard Central Bank independence and private mining rights. A referendum on the document is set for 4 September.
Chile Economic GrowthGDP growth will slow notably in 2022 amid high inflation and interest rates, and weak investment due to political uncertainty. New Covid-19 variants, lockdowns in key export market China, potential flare-ups in social unrest if the new constitution is rejected, political violence in the south and the government’s weak parliamentary base are factors to watch. FocusEconomics panelists see GDP growing 2.0% in 2022, which is down 0.1 percentage points from last month’s forecast. In 2023, GDP is seen expanding 0.9%.
Chile Economy Data
5 years of Chile economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||3.14||-0.44 %||Dec 30|
|Exchange Rate||752.0||0.05 %||Jan 01|
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.
Chile Economic News
August 1, 2022
Economic activity increased 3.7% in year-on-year terms in June, which was a deterioration from May's 6.4% increase.
July 31, 2022
Business confidence came in at 39.0 in July, down from June's 42.7.
July 18, 2022
Consumer confidence fell to 96.9 in June from May's 103.8.
July 14, 2022
At its 13 July meeting, the board of the Central Bank of Chile (CBC) decided to increase the monetary policy rate from 9.00% to 9.75% taking total tightening this year to 575 basis points.
July 8, 2022
Consumer prices increased 0.93% in June over the previous month, slowing down from the 1.20% rise logged in May.