During the third quarter of 2020, the Chilean economic activity recovered slightly with respect to the previous quarter, as a result of the relaxation of containment measures. Despite recording an increase with respect to 2Q20, GDP y/y growth remained negative at a rate of -10.25%. This mild rebound was driven by the partial recovery of domestic demand compared to 2Q20. However, domestic demand remained below the pre-pandemic levels. On the other hand, the labor market continued to be significantly deteriorated. Unemployment increased compared to the previous quarter, up to a rate of 12.79%, while employment creation decreased down to a rate of –19,41%. Inflation continued the decline initiated in the first quarter of the year and stood at a rate of 2.68% during 3Q20. The Chilean peso appreciated against the US dollar, recording an average exchange rate of 780.93 $CLP/USD in 3Q20.
Macroeconomic outlook report: Chile 3Q20
- During the third quarter of the year, the year-on-year variation of Chile's GDP increased by 3.77 p.p. with respect to the one recorded in 2Q20, up to a rate of -10.25%. The weakening of the fall of the Chilean GDP was mainly due to the relaxation of the containment measures which helped reactivate part of the economy.
- Regarding the labor market, the unemployment rate increased by 1.97 percentage points from the previous quarter, up to a rate of 12.79% in 3Q20. Employment in Chile decelerated by 4.71 p.p. compared to the previous quarter, down to a year-on-year rate of -19.41%.
- The Chilean peso appreciated against the US dollar compared to the previous quarter. The average exchange rate stood at 780.93 $CLP/USD in 3Q20, 42.04 pesos per dollar less than in the previous quarter.
- In 3Q20, the variation of the price index stood at 2.68%, after a 0.25 p.p. decrease compared to 2Q20.
For more information, click here to access the executive document in pdf (only avalaible in Spanish).