During the second quarter of 2020, the year-over-year GDP growth in Chile sharply fell when compared to 1Q20, down to -13.68%. This performance was mainly due to the fall in domestic demand, with all its components decreasing with respect to the previous quarter. Chile, like most countries, suffered a sharp slowdown in its economic activity due to the spread of the Covid-19 pandemic and the containment measures that followed for most of the second quarter. Regarding the labor market, the unemployment rate increased with respect to the previous quarter, up to 10.82% during the second quarter, while employment recorded a year-over-year growth rate of -14.70%, after a considerable slowdown compared to the previous quarter. In 2Q20, the inflation rate stood at 2.93%, following a reduction compared to 1Q20. The Chilean peso depreciated against the US dollar compared to the previous quarter. The average exchange rate of the Chilean peso stood at 822.97 CLP/USD in 2Q20.
Macroeconomic outlook report: Chile 2Q20
- During the first quarter of the year, Chile's GDP growth contracted by 14.08 p.p. when compared to 1Q20, down to -13.68%. The fall in GDP was due to the behaviour of domestic demand, which fell sharply, while on the other hand, external demand alleviated this fall.
- Concerning the labor market, the unemployment rate increased 3.00 p.p. from 7.82% in 1Q20 to 10.82% in 2Q20. Employment in Chile stood at a year-over-year growth rate of -14.70%, after recording a deceleration of 16.23 p.p. when compared the previous quarter.
- The Chilean peso depreciated against the U.S. dollar compared to the previous quarter. The average exchange rate of the Chilean peso was 822.97 CLP/USD in 2Q20, 20.17 pesos per dollar more than in the previous quarter.
- In 2Q20, the year over year growth rate of the price index stood at 2.93%, after a deceleration of 0.77 p.p. when compared to 1Q20.
For more information, click here to access the executive document in pdf (only avalaible in Spanish).