A very soft landing, with plenty of turbulence

CHILE - Report 21 Mar 2023 by Igal Magendzo and Robert Funk

Chilean economic activity has been moving away from the protracted decline observed in the second half of 2022. The Monthly Economic Activity Index surprised positively in January. The breakdown by sectors showed widespread improvement. Nevertheless, services continued to lead the way. The real question is whether consumption can be sustained, or if it is destined to collapse. Household purchasing power is clearly declining, but there is still some wiggle room that could help prevent a major consumption drop.

February numbers confirmed the recovery of the trade balance. Exports decreased, and the monthly value of imports was at its lowest since April 2021. This helps correct one of the major disequilibria in the Chilean economy.

The labor market continued to weaken in the November-January rolling quarter. Private non-farming employment saw its largest monthly decline since July 2020. The unemployment rate rose slightly in the November-January rolling quarter, consistent with seasonal patterns. Real wages have been falling.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.