During the fourth quarter of 2020, the Chilean economic activity recovered significantly with respect to the previous quarter, as a result of the relaxation of containment measures. Despite recording an increase with respect to 3Q20, GDP y/y growth remained negative at a rate of -0.07%. This improvement was driven by the recovery in domestic demand and consumption 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 10.90%, while employment recorded an improvement compared to the previous quarter, although it continued to register a negative year-on-year growth rate of -12.96%. Inflation increased from the previous quarter up to 2.88%. The Chilean peso appreciated against the US dollar, recording an average exchange rate of 761.96 $CLP/USD in 4Q20.

 


Macroeconomic outlook report: Chile 4Q20

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Macroeconomic overview

  • During the fourth quarter of the year, the year-on-year variation of Chile's GDP increased by 10.18 p.p. with respect to the one recorded in 3Q20, up to a rate of -0.07%. 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 1.89 percentage points from the previous quarter, down to a rate of 10.90% in 4Q20. Employment in Chile presented a negative year-on-year rate of -12.96%, although it was 6.44 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 761.96 $CLP/USD in 4Q20, 18.97 pesos per dollar less than in the previous quarter.
  • In 4Q20, the variation of the price index stood at 2.88%, after a 0.21 p.p. increase compared to 3Q20.

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