Macroeconomic outlook report: Chile

During the first quarter of 2020, the year-over-year GDP growth in Chile accelerated when compared to 4Q19 up to 0.47%. This performance was mainly due to the increase of the internal and external demand. However, it´s worth noting that in Chile the local economic indicators available at the statistical close of March did not incorporate the effects of Covid-19 and the measures taken to contain its spread. Regarding the labor market, the unemployment rate increased with respect to the previous quarter, to 7.82% in this quarter; while employment grew at a year-over-year rate of 1.53%, which represented a deceleration with respect to the previous quarter. In 1Q20, the inflation rate stood at 3.70%, after an acceleration with respect to 4Q19. The Chilean peso depreciated against the US dollar compared to the previous quarter. The average exchange rate of the Chilean peso was 802.80 CLP/USD in 1Q20.

Macroeconomic overview

• During the first quarter of the year, Chile's GDP growth accelerated by 2.84 p.p. when compared to 4Q19 to 0.47%. The performance of the GDP was due to the performance of the internal and external demand.
• Concerning the labor market, the unemployment rate increased 0.77 p.p. from 7.05% in 4Q19 to 7.82% in 1Q20. Employment in Chile grew at a year-over-year growth rate of 1.53%, a deceleration of 0.77 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 802.80 CLP/USD in 1Q20, 46.82 pesos per dollar more than in the previous quarter.
• In 1Q20, the change in the price index stood at 3.70%, after an acceleration of 0.95 p.p. compared to 4Q19.

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