During the fourth quarter of 2021, Chile continued on its path of recovery from the recession caused by COVID-19 due to the removal of restrictions and the abundant liquidity of households, encouraging private consumption as the main driver of the recovery. The year-on-year rate of change in GDP was lower than in the past two quarters, although it continued to show solid growth of 11.78%. On the other hand, the labor market improved markedly. The unemployment rate fell to 7.60%, while employment recorded another positive year-on-year rate of 8.82%. Inflation rose to peak levels, registering a rate of 6.63%. This was motivated by both international and local factors, including the depreciation of the Chilean peso against the dollar, which recorded an average exchange rate of 825.23 CLP/USD in 4Q21.

Macroeconomic outlook report: Chile 4Q21

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Macroeconomic overview

  • During the fourth quarter of the year, the year-on-year rate of change in Chilean GDP decreased by 5.47 p.p. compared to that registered in 3Q21, thus standing at 11.78%. Despite the slight decline, this positive figure came largely as a result of private consumption, sustained by high levels of household liquidity and reduced restrictions.
  • Regarding the labor market, the unemployment rate decreased by 1.03 p.p. compared to the previous quarter, down to 7.60% during the fourth quarter. Employment in Chile presented a positive year-on-year rate of 8.82%, which represented a fall of 5.62 p.p. compared to the previous quarter.
  • During the fourth quarter, the Chilean peso depreciated by 6.99% against the US dollar compared to the previous quarter. The average exchange rate stood at 825.23 CLP/USD.
  • Finally, the variation of the price index stood at 6.63%, after increasing by 1.74 p.p. compared to 3Q21.

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