During the first quarter of 2021, Chilean economic activity continued the recovery that started in 3Q20, as a result of the relaxation of the containment measures. The year-on-year rate of change in GDP registered an increase to a positive GDP growth rate of 1.19 %. This improvement was driven by the recovery in domestic demand compared to the previous quarter. On the other hand the labour market experienced a slight recovery. Unemployment decreased compared to the previous quarter, down to a rate of 10.30%, while employment recorded an improvement compared to the previous quarter, although it continued to register a negative year-on-year growth rate of -9.91%. Inflation increased from the previous quarter up to 2.95%. The Chilean peso appreciated against the US dollar, recording an average exchange rate of 724.18 $CLP/USD in 1Q21.

 


Macroeconomic outlook report: Chile 1Q21

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Macroeconomic overview

  • During the first quarter of the year, the year-on-year variation of Chile's GDP increased by 1.28 p.p. with respect to the one recorded in 4Q20, up to a rate of 1.19%. The improvement in 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 decreased by 0.60 percentage points from the previous quarter, down to a rate of 10.30% in 1Q21. Employment in Chile presented a negative year-on-year rate of -9.91%, although it was 3.06 p.p. higher than in the previous quarter.
  • The Chilean peso appreciated against the US dollar compared to the previous quarter. The average exchange rate stood at 724.18 $CLP/USD in 1Q21, 37.78 pesos per dollar less than in the previous quarter.
  • In 1Q21, the variation of the price index stood at 2.95%, after a 0.06 p.p. increase compared to 4Q20.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).