Chile

RGE's Q1 2010 Chile Outlook

Most recent indicators suggest that the economy will continue on an expansionary path, as consumption remains strong and investment is picking up, while a low base is taking effect. Still, some sectors are accelerating slowly.  Although industrial production improved in December (-0.3% y/y vs. -3.6% y/y three months moving average-3MMA), it surprised consensus on the downside, while the mining sector (+1.7% vs. +6.7% y/y 3MMA) and energy generation (0.1% y/y vs. 0.6% y/y 3MMA) slowed down by the end of last year. Industrial output continues to be affected by viral problems in the salmon industry; nevertheless, there are signs that an inventory restocking is starting to take place, according to the government.

Meanwhile, total trade, which represents about 70% of GDP, surged (+26.4% y/y vs. -8% y/y 3MMA) in December. Here, investment related imports, such as capital...

Read the Q1 2010 Chile Outlook.