Macroeconomic outlook report: Chile

During the fourth quarter of 2017, the Chilean economy recorded an acceleration of 1.08 p.p. in its year-over-year growth rate in comparison with the previous quarter, standing at 3.25%. The y/y growth rate of domestic demand accelerated 1.49 p.p. to 3.98%. Regarding the labor market, the unemployment rate went down compared to the third quarter of 2017, reaching 6.53%, and the year-over-year growth rate of employment decelerated 0.15 p.p., standing at 2.11%. The Chilean peso appreciated against the US dollar, registering an exchange rate of 633.41 $CLP/USD. Lastly, the inflation stood at 2.02%.

Macroeconomic overview

• During the fourth quarter of the year, the Chilean economy registered acceleration in the year-over-year growth rate of GDP of 1.08 p.p. when compared to the previous quarter, up to a rate of 3.25%. This growth was mainly driven by the acceleration of 1.49 p.p. of the domestic demand, which registered a y/y increase of 3.98%, due to the acceleration of both private consumption and investment. In annual terms, the Chilean GDP growth rate stood at 1.64% in 2017, a 0.03 p.p. increase in comparison with the previous year.
• As for the labor market, the unemployment rate went down by 0.20 p.p. to a rate of 6.53%. The year-over-year growth rate reached 2.11%, decelerating 0.15 p.p. when compared to the third quarter.
• The Chilean peso appreciated against the US dollar in 9.24 pesos per dollar during the last quarter of 2017, registering an exchange rate of 633.41 $CLP/USD. This appreciation was based on the loss of value of the American currency as well as on the increase in the price of copper, and on the better prospects for growth of Chile in 2018.
• The inflation stood at 2.02% in the fourth quarter of 2017, accelerating 0.35 p.p. compared to the previous quarter, leaving behind the downward trend recorded since 2Q16.

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